Nordea and DNB complete Baltic operations merger
Nordea Bank Abp and Norway's DNB have finalized the combination of their Baltic operations into a new entity named Luminor. The new bank ranks as the third-largest financial services provider in the region.
Nordea Bank Abp and Norway's DNB have officially completed the formation of their joint venture in the Baltic region. The combined entity, operating under the name Luminor, is now the third-largest financial services provider in the Baltics, holding a 16 percent market share in deposits and 23 percent in lending.
The transaction brings together approximately 350,000 Nordea customers and 930,000 DNB customers across Estonia, Latvia, and Lithuania. Luminor will employ around 3,000 staff and manage assets totaling approximately EUR 15 billion. Gross lending is expected to reach EUR 12 billion, with deposits amounting to EUR 9 billion.
Nordea will hold a 56 percent economic interest and a 50 percent voting share in the new company. Luminor will be accounted for using the equity method in Nordea's financial results starting from the fourth quarter of 2017.
The completion followed the receipt of all necessary regulatory approvals from the respective authorities. The agreement to combine operations was initially announced in August 2016.