TeleTrade And Nordnet To Merge To Form Largest Internet Broker In Scandinavia

by Philip Morton, InvestorsOffshore.com

12 April 2001

Scandinavian stockmarket investors are set to benefit from the proposed merger between two of Sweden's largest securities trading companies, which was announced this week. TeleTrade and Nordnet intend to merge to form the largest Internet broker in Scandinavia, the aim of the tie-up being to strengthen the two brokers in a market that is not only undergoing consolidation but which has also recently been marked by falling volumes on the stock market. The two companies have said that the size and financial power of the combined group - provisionally called Nordnet TeleTrade - will create the conditions for continued expansion in the Nordic region and the development of its range of products and services on offer.

As the leading Internet broker in the Nordic region, the enlarged entity will have around 65,000 active clients and a total share of the Stockholm stock exchange of 8.5 per cent (measured in terms of the number of transactions in the first quarter of this year). Klas Danielsson, proposed chief operating officer of the new group, commented: 'We will be the only Internet broker in the Nordic region securing sufficiently large volumes to achieve good profitability.' Bo Mattsson, proposed chief executive of the merged company, added: 'By entering into this deal, we are taking hold of the structural changes that are taking place within the industry.'

Nordnet was established in 1996 as one of the first players in Sweden to offer securities business online and is currently the largest pure Internet broker in the Nordic region. Nordnet is made up of Nordnet Sverige, Nordnet Norge, Nordnet Danmark and Eurotrade. Eurotrade focuses on securities business via the Internet for Swedes living outside Sweden and is currently established in Luxembourg. Nordnet Norge's business operations commenced in January 2001and Nordnet Danmark is to be launched during the second quarter of 2001. TeleTrade currently conducts its business via three divisions, one of which - TeleTrade Solutions - is dedicated to online broking.

The merger is subject to final agreement between the parties and approval by the Financial Supervisory Authorities in Sweden and the name and trademark of the new group are to be decided on before the summer.

Recommended