Danish Lender Nykredit To Takeover Spar Nord Bank

Danish lender Nykredit has agreed to acquire its domestic rival, Spar Nord Bank, in an all-cash deal valued at 34.7 billion Danish crowns.

The takeover aims to strengthen their combined market position, expand their business and customer base across personal and business customers and capitalize on potential synergies.

With Nykredit ranking as Denmark’s fourth-largest bank and Spar Nord Bank positioned as the sixth-largest bank, the combined bank will create Denmark’s third-largest bank with total lending of approximately DKK 160 billion and a market share of roughly 13%.

In a press release, Nykredit noted that the merger plan aims to ensure that customers continue with the adviser they currently have and are familiar with. However, it warned that combining two businesses could lead to an overlap of functions, potentially leading to redundancies.

In addition, it added that it does not intend to merge branches, aiming instead for a smooth transition for customers and employees while fostering growth and business development in both banks.

However, it acknowledged that some towns and cities with overlapping activities might require a review of the branch network. Even in such cases, the priority will be to maintain a strong local presence and deliver the highest quality service to customers.

Michael Rasmussen, Group Chief Executive of Nykredit, said:  “We share a common history as sound and strong companies that are firmly anchored in Denmark and in the many local communities in which we are present.

"Together, we will become Denmark’s customer-owned bank, offering even more customers the opportunity to experience the benefits this offers.”

The combined bank’s future headquarters will be Nykredit’s current headquarters. The takeover is expected to be completed in the first half of 2025.