The proposed sale of Danske Bank’s (DANSKE.CO) Norwegian personal client business to rival bank Nordea (NDAFI.HE) raised concerns from Norway’s competition authorities on Tuesday, leading to an extension of the regulatory examination of the transaction.
The sale of Denmark’s Danske Bank’s Norwegian private banking and personal client business to Finland’s Nordea was announced in July. The purchase price was to be determined “at book value” at the time of the transaction.
The regulator stated, “Our preliminary assessment is that there may be reason to fear that the acquisition will impact Norwegian bank customers negatively.”
“Going forward, the competition authority will more thoroughly consider whether there are reasons to prohibit the acquisition,” it stated.
Danske Bank stated that it was still planning for the transaction to close by the end of 2024. Separately, Nordea declared that it was still committed to the deal.
In a statement, Nordea Norway CEO Randi Marjamaa stated, “We take note of the Norwegian Competition Authority’s decision to further review the case and will naturally provide additional information if needed.”
“Our view is that the Norwegian banking sector is characterized by keen competition and that Nordea is a perfect solution for customers in light of Danske Bank’s decision to exit the Norwegian market for personal customers.”
By January 12, the Norwegian regulator must publish its following assessment: At that point, it will either have to approve the merger or alert Danske and Nordea to the possibility that it may be prohibited.
Comment Template