30. april 2014
On 30 April 2014 the Danish Competition Council (DCC) approved Jyske Bank A/S´ (Jyske Bank) proposed acquisition of mortgage lender BRF kredit A/S (BRF). The DCC finds that the transaction will not harm competition and that it might strengthen BRF’s position on the Danish market for mortgage loans to private customers.
Jyske Bank is the third largest financial institution in Denmark. The Company distributes both its own as well as partners’ financial products, including BRF’s mortgage loans.
BRF on the other hand runs a nationwide mortgage lending business and is the fourth largest mortgage lender in Denmark. BRF is also active on the retail banking market via its subsidiary - BRFkredit Bank.
Except for a potential market for mortgage lending to public housing projects, Jyske Bank and BRF individually and combined hold limited market shares in the relevant markets.
The DCCA chose to thoroughly examine the proposed merger’s effects on the relevant markets as:
- the relevant upstream-markets for mortgage lending are highly concentrated,
- the merging parties constitute the third largest financial institute and the fourth largest mortgage lender in Denmark respectively, and
- the merging parties are expected to be declared Systemically Important Financial Institutions (SIFI) in Denmark.
The DCC’s analysis of the transaction’s economic and competitive effects showed that the combination of Jyske Bank and BRF will not harm competition and that its primary effect might be a strengthening of BRF’s position in relation to mortgage lending to private customers.
The DCC therefore concluded that the transaction would not impede competition in the relevant markets.
For more information please contact Head of Division Martin Nyvang, phone +45 4171 5190, e-mail email@example.com or Deputy Head of Division Adrian Lübbert, phone +45 4171 5030, e-mail firstname.lastname@example.org.