Denmark's Nykredit in $3.5 billion deal to buy Spar Nord Bank

OSLO (Reuters) -Danish lender Nykredit has agreed to offer 24.7 billion Danish crowns ($3.50 billion) in an all-cash bid to buy domestic rival Spar Nord Bank, the two companies said in a joint statement on Tuesday.

"The merger will create the third-largest bank in Denmark with a strong customer-ownership, Denmark's largest branch network and solid market positions in the private and corporate areas," the companies said.

The offer of 210 Danish crowns per share represented a premium of 49% to Monday's closing price of 140.6 crowns for Spar Nord, the companies said.

Spar Nord's board of directors supported the bid and will unanimously recommend shareholders to accept the offer, it said.

Nykredit already holds a 19.6% stake in Spar Nord.

The deal was expected to close in the first half of 2025, the companies said.

($1 = 7.0623 Danish crowns)

(Reporting by Terje Solsvik, editing by Louise Rasmussen and Louise Heavens)