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Iceland-based Kaupthing bank takes over Dutch NIBC Bank

Iceland-based Kaupthing Bank on Wednesday announced it will take over Dutch business bank NIBC Holding NV for €2.985 billion ($4.054 billion).

The takeover however excludes NIBC’s US portfolio, which will remain with its owner. NIBC Bank is owned by a shareholders group led by US private equity firm JC Flowers & Co., LLC. The Dutch business bank recently announced that the ongoing crisis on the US credit market had forced the bank to deduct €137 million ($184.7 million) from its US portfolio, limiting its net profit to €3 million. Publishing its half-year results on Wednesday, Kaupthing Bank said the acquisition will make it one of the leading corporate and investment banks focusing on financial services to small- and medium- sized enterprises in Europe.

European Kaupthing Bank offers integrated financial services to companies, institutional investors and high net worth individuals. With a market capitalization of €9.2 billion ($12.4 billion), the bank is currently the seventh-largest in Scandinavia. It has 2,970 employees and total assets of €54.3 billion ($73.2 billion). Kaupthing’s shares are listed on the OMX Nordic Exchange in Iceland and Stockholm.

The European bank operates in 10 countries, including all Nordic countries, Luxembourg, Switzerland, Britain and the United States. The bank operates a retail franchise in Iceland, where it is headquartered. NIBC, founded in 1945, is a Dutch merchant bank focused on the mid-cap segment in western Europe with a global distribution network. The Dutch bank has 718 full-time employees and offices in The Hague, London, Brussels, Frankfurt, New York and Singapore. (