Nykredit Realkredit (Nykredit), a Danish mortgage lender, has announced its intention to acquire all shares of Spar Nord Bank in a deal valued at DKr24.7bn ($3.5bn).
The mortgage lender has agreed to purchase Spar Nord Bank shares at DKr210 ($29.5) each.
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Spar Nord Bank’s board of directors intends to recommend shareholders to accept the offer following its approval by the Danish Financial Supervisory Authority (FSA).
The Spar Nord Foundation, holding a 20.27% stake in Spar Nord Bank, alongside all board of directors and executive members holding shares, have committed to accept the offer.
Nykredit, already owning 19.60% of Spar Nord, has secured acceptance for over 40.17% of the bank’s share capital.
The company, together with its wholly owned subsidiary Totalkredit, is said to hold a market share of about 45% in the Danish mortgage credit market.
As of the third quarter of 2024, Nykredit and Spar Nord Bank were ranked as the fourth and sixth largest banks in Denmark by lending volume, according to Nykredit’s release.
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By GlobalDataThe combined banks are expected to become Denmark’s third-largest bank, with total lending of DKr160bn ($22.5bn) and “significant” market shares in both lending and deposit volumes.
Together, Spar Nord Bank and Nykredit will have Denmark’s “most extensive” branch network.
Spar Nord Bank is a crucial part of Nykredit’s Totalkredit alliance. Both banks share the same data processing centre, BEC, and collaborate extensively, which may streamline the integration process post-acquisition.
Nykredit chairman Merete Eldrup said: “Spar Nord Bank and Nykredit are a strong match. Each of us has values and core competencies that, combined, will increase our impact in the market.
“Spar Nord Bank has a long tradition as a locally anchored relationship bank with decentralised decision-making powers and special strengths in the personal customer and the small and medium-sized business customer segments.
“Nykredit Bank is currently one of the largest lenders to large corporate customers, agriculture and the real estate sector, as well as one the largest wealth management advisers.”
Following at least 67% shareholder approval and regulatory approvals from the FSA and the Danish Competition and Consumer Authority, the deal is expected to be completed in the first half of 2025.
The lender plans to delist Spar Nord from Nasdaq Copenhagen if its ownership exceeds 90% and proceed with a compulsory acquisition of the remaining shares.
