Danica Pension, part of Denmark-based Danske Bank, has agreed to acquire the Danish pension assets of Sweden-based SEB in a transaction valued at $1bn.

Upon completion of acquisition of SEB Pensionsforsikring A/S and SEB Administration A/S, Danske Bank’s market share in Denmark pension market will surpass the current market leader PFA Pension.

Additionally, the takeover will provide Danica Pension with about 200,000 new pension customers and the company will have a total of approximately 800,000 customers in Denmark.

Danica Pension CEO Per Klitgård said: “Pension, insurance and long-term savings are becoming more and more important to our customers. The acquisition will give us strengthened innovation capacity, enabling us to deliver the right solutions for our pension and insurance customers – now and in the future.”

“In addition to strengthened innovation capacity, with SEB Pension, we will have a business that tops the customer satisfaction charts, has many skilled employees and a strong digital setup. Our objective is to combine the two companies’ strengths and create an even stronger pension offering for our customers in Denmark, Sweden and Norway.”

Subject to relevant authorities’ approvals, the acquisition is expected to complete during the first half of 2018.