Until the formal closure of the transaction the banks will conduct business as separate entities, NKBM said in a press release on Thursday.

NKBM, Slovenia's second largest bank, acquired the no. 3 on the market from the Slovenian Sovereign Holding in June.

The two banks combined will have a market share roughly equivalent to the current market leader, NLB.

NKBM's owner, the US private equity fund Apollo is expected to consolidate and sell the combined bank in a few years.