HELSINKI (Reuters) -Finland’s Nordea has agreed to buy the Norwegian personal customer and private banking business of Danske Bank, it said on Wednesday.
“The acquisition…will strengthen Nordea’s market position in Norway among household customers,” Nordea said in a statement.
The Nordic region’s main bank on Monday posted a jump in April-June profits boosted by rising interest income.
The deal, awaiting regulatory approval, is expected to close in late 2024 and includes 285,000 customers, 22 billion euros ($24.71 billion) in lending and deposit volumes, as well as managed assets worth 2 billion euros, Nordea said.
It added the sales price and the size of the portfolio would be determined at closing.
The bank said it expects its Norwegian mortgage market share to rise to 16% from 11%.
Nordea expects the transaction to be earnings per share accretive about two years after the close of the transaction.
“We’ve got the opportunity to realise funding synergies, and I guess once we get past the year one implementation costs, the cost of bringing it across to Nordea, we expect it to be accretive,” CFO Ian Smith said in a conference call.
($1 = 0.8904 euros)
(Reporting by Essi Lehto; editing by Louise Rasmussen and Kim Coghill)
