Íslandsbanki Request Merger With Kvika

On May 27, Íslandsbanki requested a merger with Kvika bank, RÚV reports. Arion bank has also sent a similar request to Kvika, which confirmed this in an announcement at the stock exchange.

In the announcement, Kvika’s board is said to review the request to decide future steps.

According to Íslandsbanki, the merger could create multiple opportunities for the united bank, its investors, clients and the financial system. Since Íslandsbanki’s public share sale, bank mergers have been a likely outcome, University of Iceland business economics lecturer Mark Wolfgang Mixa told RÚV in early May.

Arion has been interested in a merger for a while, announcing last February its interest in joining Íslandsbanki. The bank’s board of directors claimed that a consolidation of the two banks would result in consumer savings amounting five billion ISK per year. At the time, Íslandsbankir rejected the prospects.