Nordea Acquires Gjensidige Bank, Strengthens Norwegian Operations
Nordea Bank Abp has agreed to acquire Gjensidige Bank in Norway. The deal also includes a long-term strategic partnership with insurance company Gjensidige.
Nordea Bank Abp has announced its agreement to acquire Gjensidige Bank ASA in Norway. This acquisition is set to significantly bolster Nordea's presence in the Norwegian market, aiming to establish it as the second-largest bank in the country.
The agreement also entails a long-term strategic distribution cooperation with Gjensidige, a prominent Norwegian insurance provider. Gjensidige Bank specializes in digital banking services for individuals, offering products such as mortgages, car financing, and savings and investment solutions.
Nordea will purchase Gjensidige Bank for an estimated cash consideration of NOK 5,500 million (approximately €578 million). The transaction includes approximately 176,000 customers and €4.84 billion in customer assets as of December 31, 2017. The acquisition is expected to be completed in the first quarter of 2019, pending regulatory approvals.
Nordea anticipates achieving annual cost synergies of approximately €25 million by 2022 as a result of the acquisition. The bank also expects the transaction to positively impact its earnings per share from the first year.