Ingka Investments, which operates 378 IKEA-stores and its e-commerce platform, has the option to acquire the remaining 51% stake in Ikano Bank in future
Ingka Investments, the investment arm of Ingka Group, has agreed to acquire a 49% stake in Ikano Bank to expand its consumer banking operations.
Under the terms of the agreement, Ingka Investments holds the option to acquire the remaining 51% stake in Ikano Bank in future.
Ingka operates 378 IKEA-stores and its e-commerce platform in 31 countries.
Ikano Bank is owned by Ikano Group, which spun off from IKEA in 1988, and aims to become a fully digitalised bank.
Its relationship with Ingka is anticipated to help the bank further advance its transformation and deliver accessible financial services for its customers.
Ikano Bank CEO Henrik Eklund said: “We’re excited to welcome Ingka Group as a part owner of Ikano Bank. Together we will continue to develop accessible digital financial services for IKEA customers, our other valued partners, and end customers.”
The parties already have a long-term commercial partnership in place, where Ikano Bank has been serving as a financial service provider of IKEA Retail across eight countries.
With the acquisition of the stake, Ingka and Ikano Bank are expected to extend their existing relationship and offer financial services to customers.
Ingka is expected to continue its work with different partners across all IKEA Retail countries, delivering financial services to its customers.
Ikano Bank would develop and work with its existing partners and other business lines to deliver simple, fair and affordable financial services.
The transaction is expected to be completed subject to approvals by relevant regulatory authorities, including the Swedish Financial Supervisory Authority.
Once the transaction is closed, representatives from Ingka would join the Board of Ikano Bank, subject to completion of the Swedish Financial Supervisory Authority assessment.
Ingka Investments managing director Krister Mattsson said: “This agreement brings us a step closer to fulfilling Ingka Group’s ambition to offer competitive and accessible financial services, enabling even more people to have better homes and thereby, better lives.
“The significant investment in Ikano Bank is also an exciting step for Ingka Investments into the banking sector.
“As customers and retailers increasingly seek banking solutions with a strong digital foundation, our commitment to work even closer with Ikano Bank during its digital transformation is a great opportunity to serve new and existing customers alike.”