HANNOVER/FRANKFURT (dpa-AFX) - After more than 40 years, Norddeutsche Landesbank is withdrawing from aircraft financing and handing over a large part of its business to Deutsche Bank. A sales agreement for the portfolio worth 1.67 billion euros has been concluded, both companies announced on Monday. The parties have agreed not to disclose the purchase price. Affected employees will be able to transfer within NordLB.

The deal is reportedly still subject to approval by the antitrust authorities. A deal is expected to be concluded in the second half of 2024. According to NordLB, the aircraft business currently has a volume of around EUR 2.75 billion (as of March 31, 2024) and comprises around 300 financed aircraft and engines. Part of this business is to remain with the Landesbank of Lower Saxony and Saxony-Anhalt and gradually be phased out.

Ross Duncan from Deutsche Bank said that this transaction plays to the strengths and experience of the aviation industry. The bank had prevailed in a bidding process against many national and international interested parties.

In mid-March, NordLB announced that, following its withdrawal from ship financing, it would also be exiting the aircraft loan business. In contrast to the ailing ship loans, which had brought the bank to the brink of collapse in 2019, NordLB CEO Jorg Frischholz did not describe aircraft financing as a risky business at the time. The withdrawal was a "strategic decision"./bch/DP/jha