Blackstone to acquire €1bn stake in Luminor

According to Blackstone, the deal represents the largest majority stake acquisition of a universal bank by private equity in the last decade globally, and one of the largest M&A transactions in Baltic history.

Blackstone will acquire a 60% majority stake in the bank from current owners Nordea Bank and DNB for a cash consideration of €1bn. Nordea and DNB plan on retaining a 20% equity stake each in Luminor, with an additional agreement for Blackstone to purchase Nordea's remaining 20% in the coming years. 

With Blackstone on board, Luminor plans on investing in new technologies to boost its digital offering.

The bank is led by CEO Erkki Raasuke, who was formerly head of the Baltic region and group CFO at Swedbank, and also a former CEO at LHV Group in Estonia.

Company
Created in 2017 through the combination of Nordea's and DNB's operations in the Baltic countries, Luminor is one of the largest financial services in the region. Its main offices are located in Estonia, with branches located in Latvia and Lithuania. It employs a staff of 3,000 across 64 branches in the region.

People
Blackstone – Nadim El Gabbani (senior managing director).
Luminor – Erkki Raasuke (CEO).

Advisers
Equity – JP Morgan (financial due diligence); Allen & Overy (legal).

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