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RNS Number:2426K
Skandinaviska Enskilda Banken
19 September 2001


ForeningsSparbanken and SEB break off merger

ForeningsSparbanken and SEB have today withdrawn the notification to the 
European Commission concerning the planned merger between the banks. Through the
decision the merger process between the banks is discontinued.

The Boards of Directors of both banks have unanimously made this decision, since
they have established that an approval of the planned merger by the European 
Commission implies such extensive concessions that the value of the merger would
be lost through, among other things, a lack of synergies.

From the objections to the planned merger that the Competition Authority has 
expressed in its Statement of Objections of 11 September and the subsequent 
discussions between the banks and the authority, is it evident that the banks 
and the Commission have strongly diverging standpoints. In order for the merger 
to obtain approval, far more extensive concessions will be demanded than the 
banks are prepared to make. It would, among other things, be necessary to 
dispose of a considerable part of the office network, possibly including product
concessions, and thus a very large number of customers and employees. 
Concessions to such an extent mean that the value of the merger would be lost.

"Our intention was to create value for customers, personnel, shareholders and 
thereby also for the society, and at the same time create the conditions to take
a strong step into the pan-European banking market," says Goran Collert, 
Chairman of the Board of ForeningsSparbanken. "The rules of the EU focus on 
static market shares and do not take into consideration the dynamics of the 
market. To divest a large number of customers and personnel in order to reduce 
market shares, as the Commission requests, is not in line with the vision behind
the merger, namely to create value for all concerned parties. The rationale of 
the merger is still valid, but the EU regulation and its application make it 
impossible for us to carry through the deal. It calls for reflection that small 
member states with small populations do not have the same possibility to create 
effective units as the large European countries do."

"The European Commission and the banks have different views of the Swedish bank 
market," says Jacob Wallenberg, Chairman of the Board of SEB. "In its Statement 
of Objections the Commission claims that the new bank would gain such a dominant
position that not even Nordea and Svenska Handelsbanken would be able to compete
with us. We do not share that opinion. In our view competition is tough and 
constantly growing as new actors enter the market. This is shown not least by 
the fact that the prices in the banking sector are lower in Sweden than in the 
rest of Europe. We regret that the conditions to create a large European bank 
from a Swedish basis no longer exist as the synergies would be lost through 
concessions."

In the light of this the Boards of Directors of ForeningsSparbanken and SEB have
decided to withdraw their notification to the European Commission. The banks 
choose to individually seek other ways to develop the respective bank.

ForeningsSparbanken AB (publ)    Skandinaviska Enskilda Banken AB (publ)

Board of Directors                      Board of Directors

A press conference will be held on Wednesday 19 September 2001, at 10.30 am at 
Strindbergssalen, Berns, Stockholm.

Contacts ForeningsSparbanken
Staffan Salen, Executive VP and 
Head of Information and Investor Relations

+ 46 (0)8 585 927 79 
+ 46 (0)70-531 01 11

Jesper Berggren, Press Officer

+ 46 (0)8-585 924 78 
+ 46(0)70-549 37 67

Contacts SEB
Gunilla Wikman,
Head of Group Communications

+ 46(0)8-763 81 25 
+ 46(0)70-763 81 25

Boo Ehlin, Press Officer

+ 46(0)8-763 85 77 
+ 46(0)70-763 85 77

Lotta Treschow,
Head of Investor Relations

+ 46(0)8-763 95 59

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