COPENHAGEN, Feb 10 (Reuters) – Icelandic bank Islandsbanki (ISB.IC) has entered preliminary discussions with smaller lender Kvika banki (KVIKA.IC) on a potential merger, it said in a statement late on Thursday.
“The board of directors believes that a combination of the two companies could offer opportunities for increased operational efficiency and value creation,” Islandsbanki said without disclosing any financial details.
Islandsbanki, among the country’s three largest banks, said a merger would increase its balance sheet by close to 20%.
Such a deal would be subject to regulatory and shareholder approval.
Kvika banki proposed the merger last week.
Reporting by Nikolaj Skydsgaard
Editing by David Goodman
Editing by David Goodman
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