Degussa Bank has more than €5bn in customer deposits. Credit: moerschy from Pixabay.

Germany’s Oldenburgische Landesbank (OLB) has brokered a deal to buy Degussa Bank to expand retail operations in the country. 

OLB has agreed to pay €220m for the firm based on common equity tier 1 (CET1) capital of €357m at closing. 

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Through the deal, OLB hopes to scale its retail operations across the county and expand its customer base by nearly 340,000.

Specifically, Degussa Bank’s regional retail customer focus on industrial and economic centres in Western and Southern parts of the country will complement OLB’s business in the North of Germany, it added. 

Additionally, OLB is expected to benefit from Degussa Bank’s digital banking shop technology and its corporate partnerships. 

With €5bn in customer deposits, Degussa Bank caters to both private and business clients. 

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OLB CEO Stefan Barth said: “The planned acquisition of Degussa Bank is another milestone on our profitable growth path. The Degussa Bank is highly complementary to our business model. 

“By combining our strengths and expertise, we will be able to significantly expand our business across Germany and enhance our product portfolio. The planned acquisition will benefit customers, employees, and all other stakeholders.” 

OLB said it does not need additional capital for the deal, which will be financed from existing resources and capital synergies.

The acquisition is subject to customary closing conditions and regulatory approval. 

Degussa Bank CEO Michael Krupp said: “With OLB, we have found the right owner that enables us to leverage our potential and to position our business to make it more efficient and scalable for the future.”