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European Commission approves DNB and Nordea banks’ plan to merge in Baltic States

The European Commission has approved the plan between DNB Bank and Nordea Bank to merge in Baltic States. It is planned that this transaction will be completed in Q4 2017.

Once the transaction concludes, a new bank and financial service provider with be formed in Baltic States – Luminor.

«The European Commission approved unconditionally the creation of a joint venture between Nordea Bank and DNB Bank in the Baltic states. The Commission assessed the possible competitive effects of the merger on a number of distinct retail and corporate banking markets across the three Baltic countries and concluded that the merger would not raise competition concerns,» representatives of thetwo banks said in a press release.

Banks note that this decision from the European Commission means one more important step towards the formation of Luminor in Baltic States. Until the transaction is complete, both banks will continue working in Baltic States as mutually competitive businesses.

This transaction is not expected to affect customer services – everything will continue functioning as usual. Clients’ accounts will be retained and payment processing will be organized by both banks separately until all accounts are transferred to the unified banking system in each Baltic State.

DNB and Nordea clients will be informed of the transfer process shortly before the merge.

The plans for the merge between Nordea and DNB were first announced at the end of August 2016.

According to data from Association of Commercial Banks of Latvia, with a total value reaching EUR 5.3 billion, the new bank will become the second largest one in Latvia asset size-wise.


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