Nordic giant to buy Danish bank

Swedish bank Nordea has signed a contract to buy Denmark’s Fionia Bank for 121m euros ($173m; £107m) from the Danish state.

The Stockholm-based bank said the deal includes 400 staff at 29 branches.  The agreement is subject to approval by the Danish authorities, which took control of Fionia following the global financial meltdown in February.

The deal should give an investment return by 2011, said Nordea, the Nordic region’s biggest financial group.

“We have captured a unique opportunity,” added the bank. “By acquiring Fionia we continue our growth in Denmark… to the benefit of both Fionia’s and Nordea’s customers and our shareholders.”

Nordea has managed to avoid much of the fallout from US “toxic assets”.

Since the Danish state took over control of Fionia it has injected $169m into the bank to meet solvency requirements.

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