Swedish lender Handelsbanken has completed the divesture of its banking operation in Denmark to local lender Jyske Bank.
The financial value of the deal was not disclosed.
All the requirements for the transaction have been met and the assets will be transferred on 1 December 2022, Handelsbanken said.
The bank stated that the transaction value will be calculated by deducting the present value of the assets from the liabilities assumed by Jyske Bank.
The balance amount will be paid in cash along with a premium of DKK3bn ($421m) as consideration, it added.
Specifically, the deal comprises Handelsbanken’s 42 branches, 600 employees and business agreements with both individual and corporate customers.
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As of 31 October 2022, loans to individual and business customers, totalling SEK105bn ($10.05bn), make up the majority of the transferred assets.
The public’s deposits of SEK61bn ($5.8bn) make up the majority of the transferred liabilities.
It is expected that the agreement, which was announced in June of this year, will boost Handelsbanken’s CET1 capital by almost SEK2.5bn ($239.44m) and decrease its risk-weighted exposure by almost SEK25bn ($2.39bn).
For Jyske Bank, the acquisition is aimed at strengthening its market position and long-term competitiveness.
Handelsbanken decided to cease operations in Denmark and Finland in October 2021 to increase focus on its key markets.
The lender aims to strengthen operations in Sweden, Norway, and the UK, which account for about 91% of its profit, Handelsbanken had said at the time.