Swedish banking giant Nordea is to buy Danish state-owned Fionia Bank for DKK 900 million (Ôé¼120 million).
Under the terms of the deal, Nordea will take on 29 Fionia branches, its 90,000 customers, loans totalling DKK 6.5 million and 400 staff.
Some 150 jobs at the Funen-based bank will be under threat.
Stockholm-based Nordea expects that the deal, which is subject to regulatory approval by the Danish authorities, will give a return on investment by 2011.
The Danish state took control of Fionia in February as a result of the global financial crisis. Since then it has injected funds of around Ôé¼118 million into the bank.
The purchase, which is in line with NordeaÔÇÖs current growth strategy, will instantly double its market share in the Funen region. Nordea will also acquire 75,000 domestic customers from the deal, as well as 9,500 corporate clients.
ÔÇ£We have captured a unique opportunity,ÔÇØ said head of Nordic Banking for Nordea, Peter Sch├╝tze, in a statement.
ÔÇ£By acquiring Fionia we continue our growth in Denmark and get a very strong market position in the Funen region, to the benefit of both Fionia's and Nordea's customers and our shareholders.ÔÇØ
The Nordic regionÔÇÖs biggest financial group, Nordea serves around 10 million customers. It currently has 1,400 branches and over 33,000 employees worldwide.
Nordea also has one of the largest e-banking operations in the world, with around 5.4 million customers choosing to manage their finances via its online facilities.
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