SoFi shares rise as record revenue, member growth drive strong Q3 results
COPENHAGEN - Sydbank A/S, Aktieselskabet Arbejdernes Landsbank, and Vestjysk Bank A/S announced Monday they have entered into a merger agreement to create one of Denmark’s five largest banks under the brand "AL Sydbank A/S."
The boards of all three banks unanimously recommended shareholders approve the merger at extraordinary general meetings scheduled for December 2-4, 2025. The merged entity will maintain its headquarters in Aabenraa, Denmark.
According to the merger agreement, Sydbank will be the continuing legal entity. Shareholders of Arbejdernes Landsbank will receive shares in AL Sydbank at an exchange ratio of 62.47:1, while Vestjysk Bank minority shareholders will receive shares at a ratio of 100.52:1 plus a cash consideration of DKK 1.78 per share.
The post-merger ownership structure is expected to be 57.15% held by current Sydbank shareholders, 39% by Arbejdernes Landsbank shareholders, and 3.85% by Vestjysk Bank’s minority shareholders.
The combined bank will have total lending of DKK 137 billion, deposits of DKK 207 billion, and total credit intermediation of DKK 375 billion.
Management anticipates annual cost synergies of approximately DKK 1.2 billion before tax, fully realized within 24 months. Capital synergies are expected through a decline in risk-weighted exposures of DKK 12-18 billion after approximately 36 months.
The executive management team will be led by Mark Luscombe as CEO and Frank Mortensen as Deputy CEO, with Ellen Trane Nørby serving as Chair of the Board of Directors.
The merger remains subject to shareholder approval at the respective general meetings, regulatory clearance from the Danish Financial Supervisory Authority, and approval from Danish competition authorities.
The transaction is expected to be finalized in December 2025, at which point Vestjysk Bank’s shares will be delisted from Nasdaq Copenhagen.
This article is based on a press release statement from the companies involved in the merger.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.