Landsbanki approved to acquire TM insurance company in Iceland

The Financial Supervisory Authority has approved Landsbanki’s acquisition of the insurance company TM and its subsidiaries. The Authority deems Landsbanki capable of holding such a substantial stake in the company, and it also recognizes the competence of the Bank Administration to manage this ownership. However, the approval of the Competition Authority is still required before the purchase can be finalized.

Landsbanki’s decision to buy TM from Kvika was announced back in March, with the purchase price set at 28.6 billion krónur. The deal has faced criticism, particularly from former Finance Minister Þórdís Kolbrún Reykfjörð Gylfadóttir, who questioned the state’s move to acquire an insurance company. Additionally, the bank’s board came under scrutiny for not informing the Bank Administration of the intentions regarding the acquisition. Following these controversies, the entire bank board was replaced at a general meeting in April.

The Competition Authority is expected to assess the implications of the deal, with skepticism surrounding the potential benefits of such a merger in a competitive market. As Landsbanki embarks on this significant acquisition, its ability to integrate TM into its operations while addressing regulatory scrutiny will be closely watched.