Danske says purchase of NIB approved

Danish financial group Danske Bank said today all relevant authorities had approved its 10.4 billion crown ($1

Danish financial group Danske Bank said today all relevant authorities had approved its 10.4 billion crown ($1.85 billion) acquisitions of Northern Bank in Northern Ireland and National Irish Bank.

Danske Bank expects the cost of integrating the two banks to amount to 1.5 billion crowns (€200 million).

"The acquisition offers a solid basis for growth, and we have now started the integration process which will run until Easter 2006," Danske chief executive Mr Peter Straarup said. By then both banks will have access to Danske's shared IT platform, it said.

The two banks, which Danske acquired in December last year from National Australia Bank, will continue to operate under their own brand names but will adopt the visual corporate identity of Danske Bank.

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They will operate as two units with own management and staff functions but will share a number of support functions.

Northern Bank is market leader in Northern Ireland with a market share of around 20 per cent. National Irish Bank has a market share of around 4 per cent in Ireland. Danske sees a considerable potential in the bank and expects to open new branches, it said.