(updates with Norisbank plans)
FRANKFURT (AFX) - Deutsche Bank AG said it is acquiring from Norisbank AG all of the latter's 98 branches, clients, loan and deposit portfolio for a preliminary sum of 420 mln eur.
It said under the agreement, Deutsche Bank will purchase the business conducted under the 'norisbank' brand with 334,000 clients, a loan book of 1.4 bln eur, deposits of 1.6 bln eur and 98 branches in 58 cities in Germany.
For the purpose of the sale, norisbank's client portfolio, its branches and the right to use the 'norisbank' brand were hived off into a legally independent company which will be acquired by Deutsche Bank.
Norisbank's 550 employees in the sold branches and its infrastructure systems will remain with the bank, which is 90 pct owned by DZ Bank Group. The rest of 10 pct in Norisbank is held by the cooperative bank group Volksbanken und Raiffeisenbanken.
Deutsche Bank said the acquisition reinforces the bank's position in the German consumer finance market.
Norisbank said the product and distribution network of its easyCredit business, as well as the 'easyCredit' brand name, will remain within the company.
Norisbank said about 63 mln eur of the 420 mln price will be invested to improve the strategy of local and regional markets in order to expand the market share of easyCredit. It said it is also making preparations to expand abroad. marilyn.gerlach@afxnews.com mog/rar/mog/rar COPYRIGHT Copyright AFX News Limited 2005. All rights reserved. The copying, republication or redistribution of AFX News Content, including by framing or similar means, is expressly prohibited without the prior written consent of AFX News. AFX News and AFX Financial News Logo are registered trademarks of AFX News Limited
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