Sydbank Receives Regulatory Approval for Acquisition of Arbejdernes Landsbank and Vestjysk Bank
The Danish banking industry witnessed a significant consolidation move in 2025, with Sydbank acquiring Arbejdernes Landsbank and Vestjysk Bank. The deal received final regulatory approval from the Danish Financial Supervisory Authority (FSA), marking a substantial milestone in the sector’s reshaping.
Sydbank Becomes Denmark’s Fifth-largest Bank
Following the merger, Sydbank has emerged as Denmark’s fifth-largest bank, as reported by Bloomberg. The acquisition of Arbejdernes Landsbank and Vestjysk Bank, two of its smaller Danish rivals, was agreed upon by Sydbank on 27th October. The transaction, which was supported by the boards of all three banks, has significantly strengthened Sydbank’s foothold in a fragmented market.
Approval and Completion of the Merger
The merger received approval from the Danish Competition and Consumer Authority on 1st December. It was subsequently endorsed by the general meetings at Vestjysk Bank, Aktieselskabet Arbejdernes Landsbank, and Sydbank on 2nd, 3rd, and 4th December 2025, respectively. It was then officially registered with the Danish Business Authority.
The last trading day for Vestjysk Bank shares was scheduled for the day following the registration, and the exchange of shares for both Vestjysk Bank and Aktieselskabet Arbejdernes Landsbank took place on 12th December 2025.
AL Sydbank A/S: The New Entity
The merged entity, named AL Sydbank A/S, will operate from Aabenraa, Denmark, where Sydbank is based. The new bank has total lending of DKr137bn ($21.40bn), deposits of DKr207bn ($32.33bn), and total credit intermediation of DKr375bn ($58.57bn).
After the merger, the ownership of AL Sydbank will be divided among Sydbank’s current shareholders (57.15%), Arbejdernes Landsbank shareholders (39%), and Vestjysk Bank shareholders (3.85%).
Sydbank expects the merger to generate approximately DKr1.2bn in annual cost synergies within two years, primarily due to consolidation of staff, optimisation of branches, and IT integration.
Banking Consolidation in the Nordic Region
“By joining forces, we will achieve a long-term position in the Danish banking market and thus safeguard our independence and long-term value creation,” said Ellen Trane Norby, Sydbank chair, in the release at the time of the deal announcement.
This development mirrors the ongoing trend of banking consolidation in the Nordic region, reported the media outlet. This follows the recent acquisition of Carnegie by DNB Bank ASA. In the past year, Nykredit Realkredit agreed to acquire Spar Nord Bank, while Sydbank also announced a deal to acquire Coop Bank.
Source: Retail Banker International
