The European Central Bank has given final approval for the cross-border merger of Luminor Group units in the Baltic states.

Lithuania-based Luminor Bank AB and Latvia-based Luminor Bank AS will merge and become branches of one unified entity, Luminor Bank AS, based in Estonia. The Estonian unit will also become the shareholder of the Lithuanian Luminor Bank's subsidiaries.

The legal change is expected to take place Jan. 2, 2019.

The three banks in Lithuania, Latvia and Estonia are owned by Luminor Group AB, which is 56.23% controlled by Nordea Bank AB (publ) and 43.56% owned by DNB ASA.