Nordfyns Bank has ceased merger negotiations with Middelfart Sparekasse and will instead pursue discussions with Fynske Bank regarding a potential merger. The announcement, made on Monday, did not specify the reason for the breakdown in talks with Middelfart Sparekasse.

This development marks the latest chapter in a three-way interest for Nordfyns Bank, which operates eight branches in northern Funen and is headquartered in Odense.

Fynske Bank initially proposed a merger, offering 2.7 shares in Fynske Bank for each Nordfyns Bank share. However, some shareholders deemed the offer insufficient, leading Middelfart Sparekasse to enter the picture.

Middelfart Sparekasse acquired a substantial stake in Nordfyns Bank from SJF Bank and presented a more attractive offer for the remaining shares, aiming for a merger that now appears unlikely. As of now, Middelfart Sparekasse has not issued a statement regarding Nordfyns Bank’s announcement.

The potential merger between Fynske Bank and Nordfyns Bank hinges on an extraordinary general meeting at Nordfyns Bank, where a two-thirds majority vote in favor of the merger is required for management to proceed.

Middelfart Sparekasse, having recently increased its ownership stake to over one-third of Nordfyns Bank’s shares, now holds the power to effectively block the merger.