Kvika banki hf.: Joint press release from Kvika and Arion

Merger Announcement - Kvika banki and Arion Bank have initiated discussions on merging, signing a letter of intent to combine their strengths and create a robust financial institution [1][2] Merger Process - The merger is one of the largest in the Icelandic financial market, with the process expected to take time and regular updates to be provided [2] - Initial steps include due diligence reviews and merger negotiations, with preliminary discussions planned with the Icelandic Competition Authority in August [3] - The aim is to finalize contracts and complete the due diligence review in the coming months, with formal announcements to regulators and shareholder meetings contingent on successful preliminary discussions [3] Benefits of the Merger - The merger is expected to enhance banking services for retail, corporate, and investor customers, providing opportunities for risk distribution and diverse revenue streams [4] - It aims to create a more effective business model and improve efficiency within the Icelandic financial market [4] Market Position - Kvika has been a competitive player in recent years, particularly through its brand Auður, which has significantly impacted the deposits market and successfully entered the home loan market [5] - Post-merger, both companies' brands will continue to play a crucial role for customers [5]