Sydbank has agreed to acquire Coop Bank for DKK345m alongside a new partnership agreement.
Following the acquisition, Coop Bank A/S will become a wholly owned subsidiary of Sydbank.
The statement on 21 May said that in addition the agreement includes a partnership that will create attractive value propositions for the customers of Coop Bank as well as for the other members of Coop Denmark.
The parties have agreed a price involving payment of the value of the equity at the date of acquisition plus DKK 89m. The cash purchase price cannot be finally calculated until the date of acquisition. The preliminary purchase price has been calculated at DKK 345m.
The implementation of the acquisition is conditional upon approval of the Danish FSA, approval of the Danish Competition and Consumer Authority.
The terms are expected to be met by 31 July 2024.
Sydbank’s CEO Karen Frøsig said: "I am pleased that we acquire Coop Bank and at the same time conclude a partnership agreement with Coop Danmark. The bank differs from Sydbank and other traditional banks by having created a seamless bank with efficient processes. It is a unique offer to the customers who value few and simple choices."
The acquisition comprises around 88,000 customers, including 21,000 NemKonto (Easy Account) customers. Coop Bank A/S’s lending totals DKK 1.3bn and deposits DKK 3.1bn.
As a consequence of the acquisition of Coop Bank, Sydbank’s annual results are projected to increase by around DKK 40m after tax.
It is expected that the acquisition will result in a decline in the capital ratios of the Sydbank Group of around 0.5pp.
