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FCMC permits transition of Nordea Bank’s Latvian branch to DNB Bank

The Finance and Capital Market Commission has decided to permit transition of ownership over Nordea Bank AB assets and commitments in Latvia to DNB Bank, as confirmed by the commission.

Once the transition period ends, DNB Bank will be renamed as Luminor Bank.

«The deal between Nordea Bank and DNB Bank provides that Nordea Bank transfers its assets in Latvia to DNB Bank. This accounts for commitments, rights and duties, client contracts and other important bank assets. In accordance with the transition agreement, DNB Bank will acquire ownership over Nordea Bank Group’s shares in commercial associations, such as Nordea Pensions Latvia, Nordea Finance and others,» FCMC explains.

Both banks had previously announced their strategic plans to merge their activities in Baltic States. The merge is set to be carried out in multiple stages. First, Nordea Bank AB will transfer its assets to DNB Bank. Once the transfer is complete, Nordea Bank AB in Latvia will exist as a legal entity without assets and commitments. In accordance with the chosen strategy, this legal entity will later be liquidated.

BNN had previously reported that the European Commission has decided to permit the two banks to merge their activities in Baltic States. This deal is planned to be concluded on 1 October.

Representatives say Luminor is planned to become the leading provider of financial services in the Baltic region, one that would combine knowledge of the local market and experience from Nordic banking industry.

It is also mentioned that financially active residents and local and Baltic-level businesses will be Luminor’s target audience.

Once the deal is done, Luminor will have a talented team of managers from Lithuania, Estonia, Latvia and Nordic countries led by Erki Rāzuke.

Until the two banks merge, they will continue working as two mutually competing entities. Once the deal is done there will be a transition period, after which the two organizations will unite into one – Luminor Bank, as reported by representatives.

It is important to note that even after the merge of the two banks, customer service will continue as usual – accounts, account numbers, contracts and payment cards will remain unchanged. All financial commitments will remain unchanged, as well. Luminor will also continue providing financial services as usual.


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