Bank Pekao SA's second-largest shareholder supports the potential acquisition of Commerzbank AG's Polish unit mBank SA, Reuters reported.

Polski Fundusz Rozwoju S.A has a 12.8% stake in the lender and would back a deal for mBank due to the technological and operational synergies that could stem from a merger.

PFR head Paweł Borys said a deal for mBank could generate greater benefits than Pekao's previously considered integration with fellow Polish lender Alior Bank SA, which was dropped in August 2018.

The official said, however, that the decision on whether to buy mBank will be in the hands of Pekao and its largest shareholder, Powszechny Zakład Ubezpieczeń Spółka Akcyjna. Pekao earlier confirmed its interest in the acquisition of mBank.

Borys also said Pekao's shares, listed on the Warsaw Stock Exchange, were significantly undervalued at a price of 96.8 zlotys apiece.

As of Dec. 5, U$1 was equivalent to 3.85 Polish zlotys.