Sweden-based Resurs Bank AB (publ) plans to merge with its wholly owned Norway-based yA Bank AS unit through a cross-border merger to efficiently use internal resources and transfer knowledge.
The Resurs Holding AB (publ) unit said the planned move, which is intended to be completed in 2018, will also enable a broader product offering and optimization of capital and liquidity use in the group.
Upon completion, Resurs Bank's regulatory capital requirement will be trimmed by 0.6 percentage point, corresponding to 160 million Swedish kronor, due to reduced buffer requirements. The capital ratio will also be improved by 0.3 percentage point, equivalent to 70 million kronor, driven by lower foreign exchange.
Operations in Norway will also be carried out in Resurs Bank's local branch office following completion. The merger's implementation remains subject to required permits and approvals.
Resurs Bank acquired the Norwegian lender in October 2015 for about 1.57 billion Norwegian kroner.
As of Feb. 28, US$1 was equivalent to 7.88 Norwegian kroner and 8.27 Swedish kronor.
