Danish lender Jyske Bank has signed a binding agreement to acquire Swedish bank Svenska Handelsbanken’s operations in Denmark.

The move comes several months after Handelsbanken announced plans to exit Denmark and Finland due to limited growth opportunities.

The financial details of the transaction were not divulged.

However, in a separate statement, Handelsbanken said the present value of the business assets will be determined and then adjusted by the liabilities assumed by Jyske Bank on closing.

The balance amount will be paid in cash along with a premium of DKK3bn ($430m) as consideration.

The transaction is expected to include more than 130,000 clients, DKK66bn of loans and around DKK36bn of deposits.

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Handelsbanken Denmark has 43 branches and around 600 employees in the country.

Jyske Bank managing director and CEO Anders Dam 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.”

Jyske Bank expects total synergies resulting from the transaction to touch DKK300m per annum, fully realised during 2024.

It also anticipates incurring one-off restructuring and integration costs of DKK500m before tax related to the deal. The combination may also result in a post-closing adjustment of employees in Jyske Bank.

The transaction is expected to complete in the fourth quarter of 2022, subject to regulatory and anti-trust approvals.