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Nordea acquires Fionia Bank


Nordea continues to execute on its growth strategy and acquires the Danish Fionia Bank from Finansiel Stabilitet A/S. Nordea has signed an agreement to acquire Fionia Bank, excluding the ’bad bank’ part, and thereby further strengthens its position and gets a very strong market position in the Funen region in Denmark.

Nordea takes over leases and employees in the 29 branches, in total 400 employees. In one go Nordea doubles its market share in the Funen region and will introduce its broad product offering to Fionia Bank’s customer base. By introducing Nordea’s operating model, sizeable cost synergies will be realised. Additional synergies will be achieved through Nordea’s competitive funding position.

The credit quality in the acquired bank is solid, since the ’bad bank’ is separated out and is kept by Finansiel Stabilitet A/S. Impaired loans in the acquired portfolios are in line with the ratio in Nordea’s own Danish portfolio.

- We have captured a unique opportunity. By acquiring Fionia we continue our growth in Denmark and get a very strong market position in the Funen region, to the benefit of both Fionia’s and Nordea’s customers and our shareholders, says Peter Schütze, Head of Nordic Banking.

In total the transaction means that Nordea acquires a customer portfolio comprising:

75,000 household customers
9,500 corporate customers
Total lending of approx EUR 874m (DKK 6.5bn)

The acquisition price is EUR 121m (DKK 900m). In addition Nordea will re-capitalise the bank.

Nordea’s lending in Nordic Banking Denmark amounted to EUR 68.9bn end-June, which means that the transaction increases the loan portfolio by approx. 1%. The deal is expected to have a clearly positive return on investment from 2011.

The transaction is subject to approval from the Danish FSA and other relevant authorities.

Nordea Corporate Finance has acted as financial adviser in connection with the transaction.


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