Nordea announces Danish bank takeover

Sweden's biggest bank Nordea has announced the purchase of rival Danish lender Fionia for 900 million Danish kroner ($173 million).

“Nordea has signed an agreement to acquire Fionia Bank, excluding the ‘bad bank’ part, and thereby further strengthens its position and gets a very strong market position in the Funen region in Denmark,” the firm said in a statement.

“The deal is expected to have a clearly positive return on investment from 2011,” Nordea said, adding that it would take over 400 Fionia employees. The agreement is subject to approval by Danish financial authorities.

Nordea has managed to avoid much of the fallout from US “toxic assets” and announced higher-than-expected net profits for the second quarter of 2009 although it still warned that losses from bad loans could mount.

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