The Boards of Directors have agreed upon a letter of intent, which will be further formalized in a detailed merger agreement and implementation plan. The main consideration in further negotiations is to balance out solutions in all important items to achieve the best possible equality between the banks.
Both parties are solid and equal entities under no pressure to initiate a merger, and the
merger is merely based on the plan of a further strengthening of the banks and the region in
which they operate.
The two banks will be complementary in respect of geography, and will as a merged bank
take a position as the region’s leading financial institution. The two merged banks will
constitute a balance of NOK 90 billions, and will be the fifth largest Norwegian owned bank in
Norway. The merger between the banks will be the largest bank merger in Norway since
DnB and Sparebanken NOR merged in 2004.
The two banks’ strategies which are quite similar constitute a good and solid basis for the
new bank’s future strategy. Through the merger the banks will position themselves in relation
to the forthcoming consolidation process in the Norwegian banking sector, coming up as a
consequence of international regulations and new capital requirements.
The rationale behind an intended decision to merge is basically related to the following:
- Contribution to further economic growth and development of the region
- Creation of a regional financial centre with higher financial capacity and competitive
ability to serve it’s customers
- Strategic positioning in respect of handling changing external conditions and regulatory
- Geographical branch completion with branches offering competitive, efficient and locally
based customer service
- Establishment of an attractive working place, which will offer positions that require high
financial expertise and high degree of specialisation.
With a merger agreement in place the proposed name of the new bank will be Sparebanken
Sør. Staff and common functions will be balanced out between Kristiansand and Arendal.
Main office and postal address will be in Kristiansand.
Stein Hannevik, current CEO of Sparebanken Pluss, will be working Chairman of the Board.
Current Chairman of the Board in Sparebanken Sør, Torstein Moland, will be deputy
Chairman of the Board. Current Chairman of the Board in Sparebanken Pluss, Trond
Bjørnenak, will be a member of the Board. Geir Bergskaug, current CEO of Sparebanken
Sør, will be CEO. Lasse Kvinlaug, current deputy CEO in Sparebanken Pluss, will continue in
the same position.
In the further process the parties will negotiate and eventually agree upon terms and conditions for a merger. A financial and legal due diligence of the banks will be conducted. A merger agreement is expected to be completed by June 2013, and the decision to merge is scheduled to be taken by the banks’ Boards of Trustees by June 2013. Subject to approval from regulatory authorities, the merger is expected to be conducted by 1 January 2014.
For further information please contact:
Trond Bjørnenak, Chairman of the Board in Sparebanken Pluss
Phone: +47 91 69 34 11
Torstein Moland, Chairman of the Board in Sparebanken Sør
Phone: +47 90 50 23 33
Stein A. Hannevik, CEO, Sparebanken Pluss
Phone: +47 98 28 17 77
Geir Bergskaug, CEO, Sparebanken Sør
Phone: +47 90 12 72 06