10 October 2017

Gernandt & Danielsson advises Nordea in connection with the combination of Nordea’s and DNB’s respective businesses in the Baltics

On 25 August 2016 Nordea Bank AB (publ) and DNB Bank ASA entered into an agreement to combine their operations in Estonia, Latvia and Lithuania in order to create a leading independent main financial services provider in the Baltics. The completion was conditional upon receiving regulatory approvals in the respective jurisdictions. In addition, competition clearance had to be granted by the European Commission. After receiving all approvals, the transaction closed on 1 October 2017.

The name of the new bank is Luminor. Luminor will be the third largest financial services provider in the Baltic banking market with a market share of 16 per cent in deposits and 23 per cent in lending. Luminor will comprise Nordea’s approximately 350,000 and DNB’s 930,000 customers across the three markets. The operations will have approximately 3,000 employees and approximately EUR 15bn in assets. 

Nordea will hold approximately 56 per cent of the economic rights and approximately 49.9 per cent of the voting rights of the new Swedish parent company.

Gernandt & Danielsson has advised Nordea with a deal team consisting of Partner Mats Hugoson, Counsel Joakim Brännström, Associates Fredrik Haräng and Sofia Tångelin, a team regarding the financing of the merged businesses consisting of Partner Björn Svensson, Senior Associate Sofie Viktorsson, Associates Simon Wetterholm and Kelly Josefsson Waller, and a regulatory team consisting of Partner Nils Unckel and Senior Associate Olle Asplund.

In addition, Gernandt & Danielsson has co-operated with Sorainen law firm, which has been the local adviser of Nordea in Estonia, Latvia and Lithuania during the implementation of the transaction.