Norway regulator says Nordea-Danske deal could hurt competition

COPENHAGEN (Reuters) -Norway's competition authority on Tuesday said the planned sale of Danske Bank's Norwegian personal customer business to rival bank Nordea could hurt customers, and that a regulatory review of the deal was thus extended.

Denmark's Danske Bank in July announced the sale of its Norwegian personal customer and private banking business to Finland's Nordea, with the price to be set "at book value" when the transaction becomes effective.

"Our preliminary assessment is that there may be reason to fear that the acquisition will impact Norwegian bank customers negatively," the regulator said in a statement.

"Going forward, the competition authority will more thoroughly consider whether there are reasons to prohibit the acquisition," it added.

Danske Bank in a statement said it still expected the deal to be completed by the end of 2024.

Nordea separately said it remained committed to the transaction.

"We take note of the Norwegian Competition Authority's decision to further review the case and will naturally provide additional information if needed," Nordea Norway chief Randi Marjamaa said in a statement.

"Our view is that the Norwegian banking sector is characterised by keen competition, and that Nordea is a very good solution for the customers in light of Danske Bank's decision to exit the Norwegian market for personal customers."

The Norwegian regulator must publish its next assessment by Jan. 12, at which time it must either permit the deal or notify Danske and Nordea that there could be grounds for prohibiting it.

(Reporting by Louise Breusch Rasmussen, editing by Terje Solsvik)