Danske Bank A/S, the Nordic region’s second-largest bank, agreed to buy two Irish units from National Australia Bank Ltd. for 967 million pounds ($1.86 billion) to expand in the fastest-growing economy in Western Europe.
Buying Dublin-based National Irish Bank and Belfast-based Northern Bank will give Danske 154 branches in Ireland and in Northern Ireland, which is part of the U.K., Chief Executive Peter Straarup said in an interview today. The Irish economy may grow 4.8 percent next year, the European Commission forecast, the most among the 12 euro nations. Denmark expects 2.3 percent expansion in 2005.
“The acquisitions make good sense,” said Jens Houe Thomsen, a fund manager at Bankinvest in Copenhagen, which oversees $10 billion and owns Danske stock. “Expanding the retail activities is in line with the strategy and we expect Danske to be able to export their lean and efficient branch set-up to the Irish market.”
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