Deutsche Bank has expanded on a relationship developed earlier this year with Baugur, the Icelandic retail group, by advising the company on talks to acquire Arcadia Group, the UK retailer.

Deutsche's relationship with Baugur has proved to be fruitful, despite the fact that Iceland is hardly a hub of corporate activity, even for Nordic specialists. The bank started building up a stake in Arcadia for Baugur in the first quarter of this year, and has now followed this with a mergers and acquisitions advisory mandate from the retailer.