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Sydbank, Arbejdernes Landsbank and Vestjysk Bank enter into merger agreement
The merger will create one of Denmark's five largest banks with DKK 1.2 billion in annual cost synergies and a strong nationwide branch network, pending shareholder approval.
- On Monday, the boards of Sydbank, Arbejdernes Landsbank and Vestjysk Bank agreed to propose a merger creating AL Sydbank, headquartered in Aabenraa, Denmark, with lending of DKK 137 billion.
- Amid increasing regulatory and digital pressures, the Boards of Sydbank, Arbejdernes Landsbank and Vestjysk Bank said rising regulation, competition and digitalisation challenged customer focus and competitiveness, prompting the merger as a defensive strategy.
- The merger requires shareholder approval and regulatory clearances from financial and competition authorities, with the Boards of Sydbank, Arbejdernes Landsbank and Vestjysk Bank unanimously recommending acceptance.
- Customers and employees are slated to benefit from a stronger branch network and expanded career and development opportunities, with AL Sydbank projected to realize annual cost synergies of approximately DKK 1.2 billion before tax after 24 months.
- Under the terms, retiring shares will be exchanged at specified ratios and some minority holders receive a cash consideration; Vestjysk Bank shares will be delisted from Nasdaq Copenhagen and AL Sydbank shares admitted after registration.
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17 Articles
17 Articles
Sydbank, Arbejdernes Landsbank and Vestjysk Bank will merge. What does this mean for the customers of the three banks?
·Copenhagen, Denmark
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An impartial advisor explains what he would do if he were a customer of one of the three banks that are now going to merge.
·Aarhus, Denmark
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Shareholders must vote through the merger at extraordinary general meetings before it becomes a reality.
·Copenhagen, Denmark
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Coverage Details
Total News Sources17
Leaning Left4Leaning Right2Center1Last UpdatedBias Distribution57% Left
Bias Distribution
- 57% of the sources lean Left
57% Left
L 57%
14%
R 29%
Factuality
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