Nordea Buys Danish Bank
One of Sweden's major banks, Nordea AB, announced on Monday that it had signed a multi-million dollar contract with Denmark to buy the state owned Fionia Bank.
The Danish state took control of Fionia following the credit crunch in February and pumped in 169 million dollars into the bank to head off insolvency.
Nordea said the cost of the deal was 173 million dollars.
"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. We have captured a unique opportunity. By acquiring Fionia we continue our growth in Denmark ... to the benefit of both Fionia's and Nordea's customers and our shareholders.The deal is expected to have a clearly positive return on investment from 2011," Nordea said in a statement.
Nordea said that would take on Fionia's 400 staff at 29 branches. The deal is pending approval from Danish competition authorities and is expected to be concluded in October.