Nordea and DNB are set to combine their operations in Estonia, Latvia and Lithuania in a bid to create a new bank in the Baltics with strong Nordic roots.
According to the two banks, Nordea and DNB will each complement the other in the region, as Nordea has a presence with corporates and DNB works with a large portion of the small and medium-sized enterprise segment.
The combination could also allow them to create a larger and more competitive retail business.
Under the agreement, Nordea and DNB will have equal voting rights over the new bank, but ownership will reflect the relative equity value of their contributions at the time the deal is closed, expected to be in Q2 2017.
The two banks will continue to operate independently until all necessary approvals have been received.
Inga Skisaker, head of banking for the Baltic countries at Nordea, said: “Combining knowledge of the Baltic market, close cooperation with our customers and developments in digital banking, Nordea has over the years built a solid and successful bank in the Baltic region with a strong position as number three in the Baltics.”
“Now it is time to take the next step and build for the future. Together we will have the scale, stronger geographic presence and broader product offering, enabling us to become the main bank for customers in the Baltics.”
Mats Wermelin, head of the Baltic division at DNB, added: “With over 70 branches in the Baltics, DNB has created a dynamic and customer-centric operation. Scale is key in banking today, with larger banks having more efficient use of resources. The new bank will be better equipped to counter increasing competition in the region and capitalise on scale in order to become the main bank for more businesses, customers and partners in the Baltics.”
.jpg)