Norway's largest bank DNB has announced plans to acquire Swedish investment bank and asset manager Carnegie for SEK 12 billion ($1.14 billion), marking a significant expansion of its Nordic presence.

The deal, announced on October 21, 2024, is expected to close in the first half of 2025, subject to regulatory approvals.

The acquisition will combine Carnegie's 850-strong workforce with DNB's operations, creating a strengthened position in investment banking, securities brokerage and research across the Nordic region. Carnegie currently derives 56 per cent of its revenue from investment services and 44 per cent from wealth management.

DNB chief executive officer Kjerstin Braathen said: "Through the acquisition of Carnegie, our goal is to provide even better solutions to our clients. Carnegie is a perfect fit, in-line with our strategy, and the Transaction marks a step change in increasing the share of fee related income for DNB as a whole."

As part of the deal, DNB Markets will be globally renamed DNB Carnegie, with Carnegie chief executive officer Tony Elofsson continuing to lead the Swedish, Danish and Finnish operations through DNB Carnegie Investment Banking AB.

"DNB is a perfect partner for us to continue the legacy of Carnegie as part of a larger financial services group," said Elofsson. "By merging Carnegie and DNB Markets into DNB Carnegie we significantly enhance our ability to serve our clients across the Nordics."

The transaction is expected to reduce DNB's CET 1 ratio by approximately 120 basis points but will not impact its distribution policy. Carnegie reported a net income of SEK 535 million for the nine months ended September 30, 2024, with SEK 436 billion in assets under management.

The deal represents one of the largest recent acquisitions in the Nordic financial sector and is expected to generate a return on invested capital exceeding 15 per cent on a fully integrated basis.

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