Jyske Bank has signed a deal to acquire Handelsbanken Denmark, the Danish subsidiary of Svenska Handelsbanken, a Swedish consumer banking company.

As per the terms of the deal, Jyske Bank will pay a cash consideration, which will be decided at closing for the assets and liabilities of Handelsbanken Denmark along with DKK 3 billion ($426 million) of goodwill.

The parties had recently confirmed market rumors of holding talks for the deal.

Anders Dam — Jyske Bank Managing Director and CEO said: “The acquisition of Handelsbanken Denmark is an attractive opportunity to strengthen our market position and long-term competitiveness.

“Handelsbanken Denmark is a well-run bank, delivering a strong suite of solutions to both private and corporate clients across the country. Through the acquisition, we can further develop the combined business, benefitting our clients, create new career opportunities for our skilled employees, and generate value for our shareholders.”

Handelsbanken Denmark has a workforce of nearly 600 employees. Established in 1992, the bank operates 43 branches and has over 130,000 clients, nearly DKK 66bn of loans, and deposits of around DKK 36bn.

Svenska Handelsbanken stated: “Overall, non-recurring effects linked to the transaction, including dissolution of goodwill amounting to SEK 2.6 billion, are expected to have a relatively neutral impact on the Group’s operating profit.”

The deal, which is subject to regulatory approvals and anti-trust clearances, is likely to close in Q4 2022.

  Anders Dam, Banking acquisition news, Banking industry news, Denmark, Jyske Bank, Svenska Handelsbanken