The European Central Bank (EIB) has approved the merger of Slovenian landers Nova Kreditna Banka Maribor (Nova KBM) and Postna banka Slovenije (PBS) which is scheduled to take place on September 1, the two banks announced on July 26.

According to a Nova KBM statement, the merger with PBS was one of the strategically important projects undertaken as part of the consolidation of NKBM Group as it aims to adapt its operations to the requirements arising from its restructuring programme, as approved by the European Commission.

Nova KBM announced on March 30 that it acquired the final 0.8844% equity stake in bank PBS and thus became the bank's sole owner. This followed Nova KBM announcement on November 2, 2015 that the process of merging Nova KBM and PBS, then 99.12% owned by Nova KBM, had started.

US equity fund Apollo Global Management and the European Bank for Reconstruction and Development (EBRD) completed the acquisition of 100% of Nova KBM on April 21.

The merged bank will operate under the name Nova KBM d.d., with its head office being in Maribor. On the day of the merger, PBS will cease to exist as an independent legal entity, and all its obligations and rights will be transferred to Nova KBM, the Nova KBM press release posted on the Ljubljana Stock Exchange reads. The merger will become legally effective on the day it is entered into the court register.

“The merger will make it possible for Nova KBM to significantly strengthen its market presence and to regain its position as the second largest bank in Slovenia in terms of total assets,” Nova KBM said.

The banks said that once merged with PBS, Nova KBM will continue to concentrate on providing and further developing contemporary retail and corporate financial services, while playing an important role in contributing to the quality of the economic environment and the social life of the community in which it operates.

“For the Nova KBM Group, the merger between Nova KBM and PBS represents an important step towards gradually becoming focused on its principal activity, banking. This is also one of the key commitments arising from Nova KBM's restructuring programme,” the two banks’ press releases stated.

Nova KBM Group, one of the largest financial groups in Slovenia, recorded a net profit of €16.96mn in 2015, declining from €23.28mn in 2014. Its parent company Nova KBM d.d. (Nova KBM) reported net profit of €34.44mn in 2015, down from €35.92mn in 2014, Nova KBM announced in its annual report published on March 29 on the website of the Ljubljana Stock Exchange.