The Danish competition authority, known as the Competition and Consumer Authority, has officially approved the merger between Nykredit and Spar Nord Bank. Director Jakob Hald stated that the authority assessed the merger and found no significant hindrance to competition, allowing the merger to proceed.

The merger is significant as it involves key markets that the authority has been monitoring closely. Hald emphasized that the merger does not substantially alter competition in either the banking or mortgage sectors. Currently, Spar Nord Bank already facilitates loans from the Nykredit group, and the merger will increase Nykredit's market presence.

According to the authority, the changes in market concentration resulting from the merger remain within the thresholds set by the European Commission, indicating that horizontal competition issues are unlikely to arise. The authority paid particular attention to the relationship between the mortgage and banking markets, as mortgage loans are typically sold through banks.

Last year, a commitment agreement with Nykredit significantly lowered the barriers for banks to exit the Totalkredit collaboration, making it easier for participating banks to switch to other mortgage loan providers. The authority's investigations revealed that the merger would not significantly alter the remaining barriers in the market.

The decision was made based on the authority's Phase I investigations, which indicated that the merger would not significantly impede effective competition, thus meeting the requirements of competition law. The authority gathered information from the parties involved in the merger and other relevant market players, relying on extensive previous studies of both the banking and mortgage markets, as well as a new, smaller market survey among banks participating in the Totalkredit collaboration.