Denmark has a well-developed banking sector that includes a mix of large nationwide banks, medium-sized regional banks, savings banks, and specialized institutions. Three Danish banks Sydbank, Arbejdernes Landsbank, and Vestjysk Bank have agreed to join forces and become one new bank called AL Sydbank.
The new bank headquarters will be in Aabenraa, Denmark. Sydbank will be the continuing legal entity, meaning the new bank will legally be Sydbank, but with a new name and brand.
The deal will only go ahead if Shareholders in all three banks approve it at their special meetings in early December 2025, and Authorities including Denmark’s Financial Supervisory Authority and competition authority give their approval.
Once merged, AL Sydbank will be one of Denmark’s five largest banks, holding approximately SEK 137 billion in loans and SEK 207 billion in deposits. The combined bank aims to achieve annual cost savings of about SEK 1.2 billion a year within two years.
These savings are expected to come mainly from integrating their IT systems eliminating duplication and improving efficiency and from closing or merging overlapping branches to streamline operations and reduce expenses.
Share Structure and Exchange Ratios
After the merger ownership of the new combined bank AL Sydbank will be divided among the shareholders of the three merging banks.
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Sydbank shareholders will own about 57% of the new company, making them the largest group of owners.
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Arbejdernes Landsbank shareholders will hold about 39%, giving them significant influence but still a minority position.
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Vestjysk Bank’s minority shareholders will own just under 4%, reflecting their smaller contribution to the merged entity.
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These percentages show how much of the new bank each group of existing shareholders will control after the merger is complete.
Shareholders will get new AL Sydbank shares based on exchange ratios:
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Arbejdernes Landsbank: 1 new share for every 62.47 old shares
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Vestjysk Bank: 1 new share for every 100.52 old shares, plus DKK 1.78 in cash per share (about 34% more than the share price on October 24).
The new AL Sydbank will be led by CEO Mark Luscombe and Deputy CEO Frank Mortensen, supported by executives Jørn Adam Møller, Stig Westergaard, Peter Hupfeld, Svend Randers, and Gry Bandholm. The Board of Directors will be chaired by Ellen Trane Nørby with Claus Jensen as Vice Chair, along with several other members and four employee representatives from Sydbank. Starting in 2026, the board will consist of 18 members , 4 elected at the annual meeting, 8 by the general assembly, and 6 by employees.