Konkurransetilsynet – The Norwegian Competition Authority – has said that the planned sale of Danske Bank’s personal customer business in the country to Nordea could harm customers and competition.

Making its judgement, the watchdog on Tuesday said that it has extended a regulatory review of the deal announced in July which includes 285,000 customers, €22 billion euros in lending and deposit volumes, and managed assets worth €2 billion.

In a statement, the Konkurransetilsynet said: "Our preliminary assessment is that there may be reason to fear that the acquisition will impact Norwegian bank customers negatively. Going forward, the competition authority will more thoroughly consider whether there are reasons to prohibit the acquisition.”

In a statement, Danske Bank said that it “is committed to making the transition as smooth as possible for both customers and employees” and that the transaction is “still expected to be completed” by the end of 2024.

Randi Marjamaa, country senior executive and head of personal banking Norway at Nordea meanwhile said that it would “naturally provide additional information if needed,” adding: “Our view is that the Norwegian banking sector is characterised by keen competition, and that Nordea is a very good solution for the customers in light of Danske Bank’s decision to exit the Norwegian market for personal customers.”

The regulator has a 12 January deadline to publish its next assessment, at which time it will either allow the deal or notify the banks that there could be grounds to prohibit the merger.

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