Norwegian authories have decided to evaluate whether Nordea’s proposed acquisition of Danske Bank’s private customers in Norway will weaken competition within the Norwegian market. It’s already dominated by DNB and the banks are most concerned about the home mortgage market.
Danske Bank announced last summer that it planned to sell off its private customer portfolio in Norway. It amounts to around NOK 200 billion worth of loans, most of which are home mortgages, along with deposits and other banking services.
The bank wants to concentrate most on its private customers in Denmark, Sweden and Finland, and only on its business customers in Norway. The competition authority (Konkurransetilsynet) is concerned, however, over the prospect of Nordea (second-largest after DNB in the personal banking market) taking over Danske Bank’s 285,000 customers.
“We’re most concerned about the home mortgage market,” said Gjermund Nese of the competition authority. Danske Bank still hopes to finalize the takeover by the end of next year.