Danske Bank has decided to buy the Danish pension assets of Sweden’s SEB in a $1 billion deal to create Denmark’s largest commercial pension fund.
The bank said the purchase would bring its market share to 19.2 percent, surpassing the current market leader PFA.
Under the deal, which still needs approval from the authorities, Danske Bank will pay 5 billion Danish crowns ($795 million) in cash for the assets after SEB has paid itself 1.5 billion crowns in dividend.
The SEB unit has around 275 employees, more than 100 billion crowns under management and around 200,000 customers.
DANSKE BANK is a Danish bank that was founded on 5 October 1871 as Den Danske Landmandsbank. Headquartered in Copenhagen, it is the largest bank in Denmark and a major retail bank in the northern European region with over 5 million retail customers. The Danske Bank group operates a number of local banks around the Nordic Region as well as across Ireland. Danske Bank has set up its own captive technology centre in India called Danske IT and Support Services India Pvt Ltd.
SEB (Skandinaviska Enskilda Banken AB) is a Swedish financial group for corporate customers, institutions and private individuals with headquarters in Stockholm. Its activities comprise mainly banking services, but SEB also carries out significant life insurance operations and also owns Eurocard. The bank was founded and is controlled by the Swedish Wallenberg family through their investment company Investor AB. In 1972, Stockholms Enskilda Bank and Skandinaviska Banken merged to form SEB.