Nordic-based digital banking provider Bank Norwegian is set to be merged with its Swedish parent Nordax Bank.
The board of directors of both the firms have agreed to sign a joint merger plan for both the banks’ intra-group cross-border merger, Bank Norwegian said in its press statement.
Nordax Bank will act as the acquiring company in the deal, which will see Bank Norwegian operate through a Norwegian branch of Nordax.
Nordax Group AB, the sole shareholder of Nordax and an indirect shareholder of Bank Norwegian, has also approved the plan.
The merger is aimed at simplifying the group structure and is anticipated to enable a more effective administration and optimisation of capital and liquidity utilisation within the group.
Bank Norwegian, which was established in Oslo in 2007 as a support platform, received a licence and established a full-scale digital bank in the same year.
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Currently, the bank is operational in Sweden, Denmark, Finland, Spain and Germany, with 1.7 million customers.
In November 2021, Nordax Bank acquired the complete ownership Norwegian bank, which offers consumer loans, credit cards and savings accounts
Through the deal, valued at around NOK19.6bn the Swedish bank had hoped to create “a stronger entity and the leading niche bank in Northern Europe”.
The execution of the merger plan is subject to several conditions and regulatory approval.
The banks hope to complete it during the first quarter of 2023 at the latest.