Germany’s state-run NordLB bank has taken full control of Bremer Landesbank, a lender badly hit by the weak shipping market.
The city of Bremen will receive EUR180m ($201m) for its 41% stake in the bank. Sparkassenverband Niedersachsen, an association of savings banks in Lower Saxony, will also sell its 4% stake in the public lender to NordLB.
“We expect that the situation on shipping markets will not improve in the short term,” Bremer Landesbank chief executive Stephan-Andreas Kaulvers said in a statement.
The bank reported an after-tax loss of EUR384m in the first half of the year on high risk provisions.