Dutch merchant bank NIBC is to be taken over by the European bank Kaupthing for almost €3bn, NIBC announced on Wednesday. Kaupthing, which is based in Iceland, operates in 10 European countries and is the seventh largest bank in the Nordic region.
The bank also presented its half year results today, reporting that net profit was down a staggering 98% to €3bn. Profit after tax from continuing operations was €141m, 6% lower than the same 2006 first half.
NIBC has made €137m losses on its US investment portfolio due to problems on the American credit market.
In a statement issued on Wednesday NIBC said its deal with Kaupthing is a ‘excellent strategic fit between the two companies which will further enhance NIBC’s ability to provide integrated financial solutions to its clients’.
CEO Hreidar Már Sigurdsson: ‘NIBC is an excellent bank that we have followed for many years. It has a strong product offering in its home market, an attractive operating performance from its core operations and strong distribution capabilities.
‘Both Kaupthing and NIBC have similar business models targeted at providing the full range of financial solutions to SMEs [small and medium sized companies] and affluent individuals, and the two businesses are complementary in terms of strategy and geographic spread’.
The deal is due to be completed by the end of the year subject to necessary regulatory approvals.
Kaupthing is active in all the Nordic countries as well as the US, Britain, Luxembourg and Switzerland. Its shares are listed on the OMX Nordic Exchange in Iceland and Sweden.
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