According to an official announcement, PKO BP has obtained regulatory permission to buy a further 25% of the PKO/CS mutual fund company (currently 50% co-owned with Credit Suisse). The initial agreement was signed on January 24, while the PLN55m transaction is expected to be finalized by April 7. PKO/CS is the fourth largest player with an 8.0% share of the market (according to February data). According to earlier announcements, PKO BP targets to obtain second position on the market. Combining the increase in ownership with a more active cross-selling strategy towards mutual funds makes sense, in our opinion, as sales typically cannibalize a bank's deposit base. While this fact is positive for PKO BP, we do not expect substantial price reaction on the back of this information as the market has already discounted it.