The Norwegian Competition Authority (NCA) has raised the real possibility of preventing a merger between finance giants DnB (Den norske Bank) and Gjensidige NOR. The potential partners disagree, foreseeing continuing competition in the market and advantages for customers.
The NCA expressed concern about the merger leading to a situation where the new company would have too much power, often over a 50 percent market share, in sectors such as loans to private customers and small-and medium-sized businesses (SMEs), leasing, factoring, individual and collective pension plans, payment services for individuals and corporate clients and funding (loans to other banks).
The NCA currently evaluates the merger as an obstacle to full competition in the market and fears higher prices and a less effective use of resources.
