Sydbank, Arbejdernes Landsbank and Vestjysk Bank are a step closer to becoming one unified bank. On Monday, the Danish Competition and Consumer Authority approved the merger announced by the three financial institutions on 27 October.
The plan is for the banks to merge into a new entity under the name AL Sydbank A/S. Sydbank will be the continuing financial institution, and the headquarters will be located in Aabenraa.
The approval from the competition authorities means that a central regulatory barrier has now been removed. However, the agreement is not yet final, as the merger still requires the green light from the Danish Financial Supervisory Authority and approval from the banks' shareholders.
Votes this week
Shareholders will have to decide at three extraordinary general meetings at the beginning of December. Vestjysk Bank will hold its meeting on 2 December, Arbejdernes Landsbank on 3 December, and Sydbank on 4 December 2025. If all three banks receive approval and the Danish Financial Supervisory Authority subsequently approves the merger, the goal remains for the new bank to come into effect before the end of the year.
One of the country's largest banks
Once the merger is completed, AL Sydbank will become one of the country's five largest banks in terms of business volume. The three banks have stated that the new bank will have total loans of approximately 137 billion kroner and deposits of around 207 billion kroner.
According to the banks, the merger will create a stronger and more efficient bank with local roots and greater capacity to assist both private customers and businesses.
