Nordfyns Bank has ceased merger negotiations with Middelfart Sparekasse and will instead pursue discussions with Fynske Bank. This development marks a significant shift in the ongoing financial landscape of Funen.

The decision comes after both Fynske Bank and Middelfart Sparekasse expressed interest in merging with Nordfyns Bank, which operates eight branches in northern Funen and is headquartered in Odense. The specific reason for the breakdown in negotiations with Middelfart Sparekasse has not been disclosed.

Fynske Bank initially proposed an offer of 2.7 shares in Fynske Bank for each Nordfyns Bank share earlier this spring. However, some shareholders deemed this offer insufficient, prompting Middelfart Sparekasse to enter the scene. Middelfart Sparekasse acquired a substantial stake in Nordfyns Bank from SJF Bank and presented a more favorable offer for the remaining shares, aiming for a merger that now appears unlikely.

Middelfart Sparekasse has not yet issued a statement regarding Nordfyns Bank’s announcement.

For a merger between Fynske Bank and Nordfyns Bank to proceed, an extraordinary general meeting must be convened at Nordfyns Bank. Approval from two-thirds of the share capital is required for the bank’s management to move forward with the merger plans. This stipulation grants Middelfart Sparekasse the potential to obstruct the merger, especially considering their increased ownership stake.

Nordfyns Bank disclosed last week that Middelfart Sparekasse has been steadily increasing its ownership share through ongoing acquisitions, now holding over a third of Nordfyns Bank’s shares.