Savings banks join forces – Homeowners fear weakened competition

– Through the merger, we will become an even more offensive and solid player, which will be as close and local as before. We will become a strong and socially engaged bank that will deliver the country’s best banking services to our customers, says CEO Jan Erik Kjerpeseth of Sparebanken Vest in a press release.

He will become CEO of the merged bank, which has not yet received a new name and brand. The banks provide information in a stock exchange announcement that the work to find a new name is underway.

The 67 local offices will therefore remain as they are today. The new bank’s head office in Kristiansand will be rebuilt and modernized.

– We gain a very strong market position which enables us to secure our community ownership, increased competitiveness for the business world, and profit sharing in the form of customer dividends and gifts for charitable purposes, says CEO Geir Bergskaug of Sparebanken Sør.

Both banks are listed on the Oslo Stock Exchange. After trading started on Wednesday, the share price for Sparebanken Sør jumped over 20 per cent, while Sparebanken Vest only had a moderate rise of 1.8 per cent.

Must visit the Norwegian Competition Authority

The merger now ends up on the Competition Authority’s table, which must approve it before it can possibly be completed.

– We have the opportunity to stop the merger if we should come to the conclusion that this weakens competition in the banking market to a significant extent, says department director Gjermund Nese in the Competition Authority to NTB.

The consumer organization Huseierne is negative about the merger and does not think the inspectorate will put its foot down.

– This is therefore a signal to the politicians. If they want good competition in the banking market going forward, there must be regulations and measures now, says Carsten Pihl, head of politics, society and sustainability in the consumer organization Huseierne.

– This merger shows that we are at full speed towards grocery conditions in the banking competition. It is something that does not benefit Norwegian mortgage customers, says Pihl.

– Satisfied

Finansforbundet, which is the largest trade union in the financial sector, for its part welcomes the merger.

– The Financial Association is positive about all initiatives that contribute to a still strong savings bank sector in Norway. This initiative is important for development and support for local businesses – and to maintain skilled workplaces in Southern and Western Norway, says Finansforbundet CEO Vigdis Mathisen.

– We are satisfied that it is announced that we will invest further in exciting development opportunities for the employees, says Mathisen.