Danish FSA approves Sydbank’s acquisition of Arbejdernes Landsbank, Vestjysk Bank

Sydbank’s acquisition of Arbejdernes Landsbank and Vestjysk Bank has received final regulatory approval, marking a significant step in Danish banking consolidation 2025.

On 5 December, the Danish Financial Supervisory Authority (FSA) granted its approval, satisfying all regulatory requirements for completion.

The merger positions Sydbank as Denmark’s fifth-largest bank, reported Bloomberg.

On 27 October, Sydbank agreed to acquire its two smaller Danish rivals, Arbejdernes Landsbank and Vestjysk Bank.

The boards of all three banks supported the transaction, which strengthens Sydbank’s presence in a fragmented market.

The Danish Competition and Consumer Authority approved the merger on 1 December, and general meetings at Vestjysk Bank, Aktieselskabet Arbejdernes Landsbank, and Sydbank on 2, 3, and 4 December 2025, respectively, endorsed the deal.

The merger will be registered with the Danish Business Authority today.

The last trading day for Vestjysk Bank shares is scheduled tomorrow, with the exchange of shares for both Vestjysk Bank and Aktieselskabet Arbejdernes Landsbank expected to take place on 12 December 2025.

The merged entity will operate as AL Sydbank A/S, headquartered in Aabenraa, Denmark where Sydbank is based.

The new bank will have total lending of DKr137bn ($21.40bn), deposits of DKr207bn ($32.33bn), and total credit intermediation of DKr375bn ($58.57bn).

 After the merger, the ownership of AL Sydbank will be divided among Sydbank’s current shareholders (57.15%), Arbejdernes Landsbank shareholders (39%), and Vestjysk Bank shareholders (3.85%).

Sydbank expects the merger to generate approximately DKr1.2bn in annual cost synergies within two years, primarily through consolidation of staff, optimisation of branches, and IT integration.

“By joining forces, we will achieve a long-term position in the Danish banking market and thus safeguard our independence and long-term value creation,” Sydbank chair Ellen Trane Norby said in the release at the time of the deal announcement.

This development reflects the ongoing trend of banking consolidation in the Nordic region, reported the media outlet.

The tie-up follows DNB Bank ASA’s recent acquisition of Carnegie.

In the past year, Nykredit Realkredit agreed to acquire Spar Nord Bank, while Sydbank also announced a deal to acquire Coop Bank.

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