The boards of Kaupthing Bank and SPRON savings bank agreed yesterday that Kaupthing will take over SPRON’s assets and debts. The merger also requires approval from SPRON’s shareholders and the Financial Supervisory Authority (FME).
The SPRON shareholders meeting will be held in August. Another requirement is that the Competition Authority approves the merger plans, Morgunbladid reports.
Director of Kaupthing Bank’s Iceland division Ingólfur Helgason said opportunities lie in the merger with SPRON. “We believe it is sensible and a self-evident move as part of the development to enlarge and strengthen the entities, especially in light of the current turbulence in financial markets.”
Branches of the two banks will still be operated under their current labels and Helgason said customers should not have to experience any significant changes. Details of the changes the companies will go through following the merger are not yet clear.
CEO of SPRON Gudmundur Hauksson said the move will strengthen both companies and the high level of service will still be upheld at SPRON. SPRON will take advantage of Kaupthing Bank’s strength in the backland, such as access to its research department.
Helgason and Hauksson state no mass layoffs will be involved in the merger process.
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