By Dominic Chopping

DNB Bank ASA said Thursday the Norwegian Competition Authority has issued a statement of objections against the bank's acquisition of Norwegian digital bank Sbanken ASA.

The statement of objections is based on the regulator's preliminary concerns related to possible effects on competition within the fund-distribution market.

"The market for fund distribution is dynamic and rapidly growing, and the offeror experiences strong competition in the market from a range of incumbents and new market players," NCA said.

DNB Bank will now examine the statement of objections and the NCA's preliminary assessment of how the acquisition may affect competition in the market.

The parties have until 16 September 2021 to reply to the statement of objections and the final deadline for the NCA's review will expire on 7 October 2021.

DNB Bank said in April that it had agreed to buy Sbanken for 11.1 billion Norwegian kroner ($1.26 billion). The deal has been approved by the Norwegian Ministry of Finance after a recommendation from the Financial Supervisory Authority, and the only remaining hurdle for completion is receipt of necessary approvals from the Norwegian competition authorities.

Write to Dominic Chopping at dominic.chopping@wsj.com

(END) Dow Jones Newswires

08-26-21 0416ET