Norway’s Norwegian Competition Authority approved the merger between finance giants DnB (Den norske Bank) and Gjensidige NOR on Friday, Norwegian Broadcasting (NRK). The Authority had originally signaled it would block the move to protect market competition but has now settled for laying down 13 conditions that must be met by the future partners.
The merger has had widespread political backing, with a major Norwegian bank seen as a modern necessity in the international market.
The banks can appeal to the Ministry of Labor and Government Administration if they do not accept the Authority’s terms.
The Kredittilsynet (Banking, Insurance and Securities Commission) had already given support to the merger while the Consumer Council has opposed it, fearing the negative effects of having such a dominant force in the Norwegian banking market.
The DnB-Gjensidige merger will create a bank with a market share of over 50 percent in most sectors and