Poland’s insurer PZU SA is planning to play a big role in funding the country’s major energy and infrastructure projects once it merges with Bank Pekao SA. The merger, expected to wrap up by mid-2026, aims to unlock about 20 billion zloty (around $5.5 billion) in capital, part of which PZU’s CEO Andrzej Klesyk wants to channel into a new fund. This fund would support key national projects and attract foreign investors, including sovereign wealth funds from Asia and the Middle East.
Poland is gearing up to spend $258 billion on renewable energy and power grid upgrades to meet European Union climate goals. On top of that, the government is pushing forward with its first nuclear power plant, which will cost about $31 billion, and a $36 billion airport hub. These heavy investments come at a time when Poland’s budget is under pressure because of increased military spending related to the conflict in neighboring Ukraine.
The merger between PZU and Pekao is an all-share deal that will see PZU, which currently owns 20% of the bank, fully integrate with it. This new group will rival PKO Bank Polski, Poland’s current market leader in assets. The merger also aims to ease regulatory demands under new EU capital rules coming in 2027 by placing PZU under Pekao’s control.
Klesyk hopes the merged company will keep a strong dividend payout to win over minority shareholders. Pekao currently offers a yield of 9.6%, while PZU’s is 7.5%. Both rates are higher than the average for their market sectors.
The company plans to reorganize into a holding as the first stage of the deal this year, but this requires changes to Polish laws. The new president, Karol Nawrocki, who can veto legislation, might block the deal since it could reduce government ownership in the merged firm. Klesyk said he’s uncertain about the president’s stance but hopes to communicate the economic benefits clearly.
If successful, this merger could give Poland a stronger financial player to support its ambitious infrastructure and energy goals, particularly as the country seeks help from international investors to share the burden.