Den Norske Bank (DnB) announced yesterday it was in talks with Gjensidige NOR on a possible NKr 17 billion merger between the two financial groups. One of the entities within Gjensidige NOR is rival local custodian Union Bank of Norway.
If a merger occurs, this may reduce the sub-custodain alternatives in Norway to just two: DnB/Union Bank and Nordea. Although earlier talks between DnB and Gjensidige NOR broke down, the collapse last year of the DnB bid for Storebrand means the management ofg the Norwegian bank is under pressure to succeed in its ambition to put on weight in the consolidating Scandinavian banking sector. Nordea previously acquired Christiania Bank in Norway, while Den Danske Bank bought Fokus Bank