TGS Baltic continued to act as a leading and only legal advisor to the Swedbank on its acquisition of Danske Bank’s personal banking business in Lithuania and Latvia

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TGS Baltic continued to act as a leading and only legal advisor to the Scandinavian financial group Swedbank on its acquisition of Danske Bank’s personal banking business in Lithuania and Latvia: assisted in a complex merger clearance process, as well as achieving conditions precedent and closing the transaction. The transaction covers personal accounts, loans, deposits, payment cards and securities.

This was one of the biggest banking business transactions in the Baltics ever. The service transfer will affect around 85,000 private Danske Bank customers in Lithuania and 5,500 customers in Latvia. The size of the loan portfolio subject to transfer is approximately 484 million EUR in Lithuania and 108 million EUR in Latvia.

Swedbank has over 7 million retail customers and around 600,000 corporate customers and organisations with 296 branches in Sweden and 149 branches in the Baltic countries. The group is also present in other Nordic countries, the U.S. and China. Swedbank is one of the leading commercial banks in Lithuania.

We have taken lead and responsibility for all legal aspects of the transaction, including structuring, negotiations, preparations to closing and actual closing. The transaction was very unique and innovative as it was done as asset deal and required simultaneous transfer of different assets and liabilities, including deposits, loans, service contracts and other. The clients demanded smooth transfer to mitigate any risk of client loss. Moreover, we have handled the transaction cross border. Despite complex documentation, the transaction was first negotiated for Lithuanian business and then similar documents were used for transfer of business in Latvia.

Our team has demonstrated outstanding deal-making capabilities and steered the transaction involving legal matters on Pan-Baltic level (Lithuania and Latvia).