OLB Completes Acquisition of Degussa Bank, Strengthens Market Position

On April 30, 2024, Oldenburgische Landesbank AG (OLB) finalized its acquisition of Degussa Bank AG, significantly enhancing its footprint in the German and broader European banking markets. This merger is positioned as a strategic enhancement, anticipated to deliver increased competitiveness and value to stakeholders.

Through this acquisition, OLB will cater to nearly one million customers nationally, integrating Degussa Bank’s 311,000 retail customers. This expansion is supported by complementary geographic locations of both customer bases. Additionally, the merger is expected to generate substantial synergies, particularly in terms of cost efficiency through streamlined operations and the optimization of personnel, IT, and marketing expenses. OLB predicts cost savings of approximately EUR 50 million soon after fully integrating Degussa Bank.

An increased deposit base, further strengthening OLB's financial foundation, is another major benefit of this acquisition. The merger saw OLB absorbing Degussa Bank's retail deposits exceeding EUR 5 billion. The financial integration and merger process is scheduled for completion by August 30, 2024, with a retrospective effective date of January 1, 2024.

Changes in governance were also effected, with the election of a new supervisory board at Degussa Bank, led by Dr. Rainer Polster. OLB emphasizes the merger's strategic importance in fostering a robust positioning for future market challenges and opportunities.