Sydbank Acquires Coop Bank for DKK345m in Major Danish Banking Deal

Sydbank's acquisition of Coop Bank for DKK345m signals a significant shift in the Danish banking sector, creating new value propositions for customers.

Sydbank has announced its acquisition of Coop Bank for DKK345m, marking a significant move in the Danish banking sector. This acquisition will see Coop Bank A/S becoming a wholly owned subsidiary of Sydbank, with the aim of creating attractive value propositions for customers of Coop Bank and other members of Coop Denmark.

The agreement between Sydbank and Coop Bank also includes a new partnership that is expected to enhance the overall customer experience and service offerings. The purchase price for the acquisition involves payment of the equity value at the date of acquisition plus DKK 89m, with a preliminary purchase price set at DKK 345m. However, the final cash purchase price will be determined at the date of acquisition.

The completion of the acquisition is subject to approval from the Danish FSA and the Danish Competition and Consumer Authority, with all terms expected to be met by 31 July 2024. The acquisition will bring around 88,000 customers, including 21,000 NemKonto customers, into the Sydbank Group. Coop Bank A/S’s lending portfolio amounts to DKK 1.3bn, with deposits totaling DKK 3.1bn.

As a result of the acquisition, Sydbank anticipates an increase of approximately DKK 40m in annual results after tax. However, the acquisition is also expected to lead to a slight decline in the capital ratios of the Sydbank Group by around 0.5pp.

The acquisition of Coop Bank by Sydbank represents a strategic move to strengthen Sydbank's position in the market and enhance its offerings to customers. The partnership agreement between the two banks is set to create new opportunities for growth and innovation in the Danish banking industry.