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Tuesday 23.05.2017 | Name days: Leontīne, Ligija, Lonija, Leokādija

Nordea and DNB hope to begin merging process in Baltics in February

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Baltic news, News from Latvia, BNN.LV, BNN-NEWS.COM, BNN-NEWS.RUThe necessary permits from competition and financial market supervisors to allow the merging of Nordea and DNB banks will have been received by the end of February, says Nordea bank’s head in Latvia Janis Buks.

While there are no permits, the two credit institutions are not allowed to discuss the merging process. The two banks are only allowed to discuss support function principles and outlines of the joint management format. Right now DNB in Latvia, Lithuania and Estonia is a sovereign organization. Nordea is a Baltic organization with Baltic functions. Buks believes a united organization would be somewhere between those two models.

Plans to merge Nordea and DNB banks in Baltics were firsts announced at the end of August 2016. In November, the announcement came that Erki Razuke would be appointed chairperson of the united bank’s board and Nils Melngailis would be appointed chairperson of the Baltic organization’s council. «Experience and reputation of those two gives me confidence that this organization will become a strong and capable bank,» – Buks said.

The name and emblem of the new bank will be revealed at the end of January.

Nordea bank lead in Latvia emphasized that clients will not be forgotten in the merging process. «The word service implies exactly that. We have to keep in mind that our customers are the most important factor in all of this. Our customers pay our wages, not Buks or anyone else. The main challenge will be doing everything we can to secure appropriate customer service. Service is the only thing that makes a bank unique,» – Buks said.

He said clients are already curious as to what will happen with their contacts in banks after the merge. Buks expressed confidence that he will continue working and providing services to customers. «We are doing everything we can to ensure our employees live with certainty of tomorrow,» – said Nordea manager in Latvia.

When asked how many clients Nordea and DNB both have, Buks said the two banks are not allowed to exchange this information yet. At the same time, he said Nordea’s corporate client portfolio does not have many clients that overlap with both banks.

Merging will be an interesting process. The new structure will definitely become a major player in Latvia with a powerful shareholder structure, professional management, clear strategy and big muscles, Buks concluded.

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