Nordea has entered an agreement to buy Danske Bank ’s Norwegian personal customer and private banking business and associated asset management portfolios. The acquisition of Danske’s personal customer and private banking business in Norway fits well into Nordea’s strategy to grow in the Nordic region organically and also through bolt-on acquisitions.

The transaction is expected to increase Nordea’s mortgage market share in Norway to around 16% from currently 11%. Nordea's officials expressed their satisfaction in announcing the acquisition, considering it an important move towards implementing their Nordic strategy and further strengthening their presence in Norway. The acquisition complements their existing operations, increasing their personal banking business in the country and creating opportunities for value generation through revenue and cost synergies.

Above all, this expansion aims to benefit their new customers, as they gain access to a wide range of financial services, expertise, and innovative digital solutions. Augmented customer experiences The acquired business will be integrated into Nordea and operated under the Nordea brand. Until closing, Danske will continue to maintain the customer relationships as previously.

No action is required from customers at this stage, and they will be kept informed of the progress of the transaction. Up until this announcement, Nordea has materially grown its operations in the Nordic markets, including the acquisition of Norway-based Gjensidige Bank and SG Finans, and Topdanmark Life. With a strong balance sheet in Europe, Nordea will continue to take the opportunities to drive profitable growth both organically and through selective acquisitions.

Transaction details The transaction is structured as a transfer of assets and liabilities at book value. Assets will be transferred at fair value and there is no goodwill payable on the assets. Any movement in assets and liabilities between signing and closing will be reflected in the consideration at closing.

Nordea only pays for the asset and liabilities that are transferred at closing. At the end of 2022 the business to be transferred comprised of approximately 285,000 customers, lending, and deposit volumes of EUR 18 billion and 4 billion, respectively, and approximately EUR 2 billion of assets under management. The transaction is subject to regulatory approvals and is expected to close in late 2024.

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