The agreement will see Nordea acquire Danske Bank’s Norwegian personal customer, private banking, and associated asset management portfolios. The move aligns seamlessly with Nordea’s strategic aim to enhance its Norwegian presence and serves to bolster its standing amongst Norwegian household customers.
The acquisition is a robust step forward in Nordea’s overarching Nordic strategy, combining organic growth with selective bolt-on acquisitions. The business move is set to significantly uplift Nordea’s mortgage market share in Norway, growing it from the current 11% to a substantial 16%.
Nordea and Danske Bank both provide wide-ranging financial services. Nordea is renowned for its personal banking, asset management, and insurance services across the Nordic region, while Danske Bank excels in personal and business banking, along with wealth management. Both are noted for their robust digital banking platforms and customer service.
Under the new agreement, the acquired business will be incorporated into Nordea and operated under the Nordea brand. Danske will maintain its customer relationships until the transition completes. The shift promises no disruption for current customers who will be kept informed throughout the process.
Nordea President and Group CEO, Frank Vang-Jensen, said, “We are very pleased to announce this acquisition, which is an important step in executing our Nordic strategy, and which expands our presence in Norway in a complementary manner.
“It will add significant scale to our Personal Banking business in Norway and offers value creation opportunities through clear revenue and cost synergies. Most importantly, this will serve our new customers, who will benefit from our broad financial offering, expertise and leading digital services.”
The deal does not necessitate goodwill payment, with assets transferred at fair value. The business-to-be-transferred encompasses approximately 285,000 customers, along with lending and deposit volumes of €18bn and €4bn respectively, plus about €2bn in managed assets. The final portfolio size and consideration paid will be determined upon closing, which is expected in late 2024, pending regulatory approvals.
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