Sydbank A/S to enhance banking portfolio with acquisition of Coop Bank A/S
In a significant development in the Danish banking sector, Sydbank A/S has officially announced its acquisition of Coop Bank A/S, which will now operate as a wholly owned subsidiary of Sydbank A/S. This acquisition not only broadens Sydbank’s customer base but also reinforces its service offerings across Denmark.
The acquisition agreement includes a cash purchase price calculated at DKK 345 million, reflecting the equity value as of the acquisition date plus an additional DKK 89 million. The final price will be confirmed at the close of the acquisition, expected by 31 July 2024, pending approvals from the Danish Financial Supervisory Authority (FSA) and the Danish Competition and Consumer Authority.
Partnership to Foster Value for Customers
As part of this strategic acquisition, Sydbank and Coop Danmark have established a partnership aimed at delivering enhanced value propositions to Coop Bank’s customers and the broader membership of Coop Danmark. This partnership is anticipated to significantly increase the business volume of Coop Bank A/S.
Karen Frøsig, CEO of Sydbank, expressed her enthusiasm about the acquisition and the concurrent partnership with Coop Danmark, stating, “I am pleased that we acquire Coop Bank and at the same time conclude a partnership agreement with Coop Danmark. The bank differs from Sydbank and other traditional banks by having created a seamless bank with efficient processes. It is a unique offer to the customers who value few and simple choices.”
Impact on Sydbank’s Operations and Customer Base
The acquisition brings approximately 88,000 customers to Sydbank, including 21,000 NemKonto (Easy Account) customers. Coop Bank A/S, which was established by Coop in 2013, has been pivotal in providing daily banking services to the more than two million members of Danish retail and consumer cooperative Coop Danmark.
The integration is projected to bolster Sydbank’s annual results by approximately DKK 40 million after taxes and result in a slight decline in the capital ratios of the Sydbank Group by around 0.5 percentage points. This strategic acquisition underscores Sydbank’s commitment to expanding its market reach and enhancing service offerings through innovative and customer-centric solutions.
This acquisition is a testament to Sydbank’s strategic vision to diversify and strengthen its banking services, leveraging Coop Bank’s established infrastructure and customer base. The partnership with Coop Danmark is a smart move, potentially creating a win-win situation for both entities by enhancing customer value and expanding market presence.