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Nordea to acquire Gjensidige Bank

Monday 2 July 2018 11:24 CET | News

Denmark-based bank Nordea has entered an agreement with Gjensidige Forsikring ASA to acquire all shares in Gjensidige Bank ASA.

The agreement also includes a long-term strategic mutual distribution cooperation with Gjensidige in Norway. Norway-based online bank Gjensidige Bank offers private individuals a suite of digital banking services, mortgages, car financing, unsecured loans and savings and investments distributed online and through a network of partners.

Nordea will acquire Gjensidige Bank for an estimated cash consideration of NOK 5,500 million (EUR 578 million), that will be adjusted for the equity generated by Gjensidige Bank until closing of the transaction. The acquisition, which is subject to regulatory and other approvals, is expected to close in the first quarter of 2019.

Nordea expects to deliver annualised cost synergies of approximately EUR 25 million from the combined Nordea and Gjensidige cost base by 2022. According to Nordea, the acquisition will have a positive impact on the bank’s earnings per share from year one, a return on investment of approximately 16% by 2022 and reduce Nordeas CET1 capital ratio by approximately 60 basis points.


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Keywords: Nordea, Denmark, Norway, Gjensidige Bank, digital banking services, mortgages, car financing, unsecured loans, savings, investments, capital ratio
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