Nordea has agreed to purchase 75 percent of the shares in JSB Orgresbank in Russia for around EUR 246 million.
Once the transaction is completed, the remaining quarter of ownership of the bank will be split evenly between the current management shareholders of Orgresbank and the European Bank for Reconstruction and Development (EBRD).
"Through the acquisition Nordea will benefit from Orgresbank's branch network and will thereby be able to penetrate the Russian corporate and retail segments", says Tom Ruud, Head of Corporate and Institutional Banking, Nordea, in a Nordea press release.
The transaction is still subject to regulatory approval from appropriate authorities, and according to Nordea it is expected to be completed during the first quarter of 2007.
The aim is to widen Orgresbank's activities especially in St. Petersburg and Moscow. In international comparison Orgresbank ranks as a middle-sized bank operating in Russia with 35 branches and a personnel of 1,000. Nordea has been looking for a ready-made bank to buy in Russia after divesting its holding in IMB (International Moscow Bank) earlier this year (see earlier article).
