Julius Baer to buy Commerzbank Luxembourg
Swiss private banking group Julius Baer has confirmed the planned acquisition of Commerzbank Internationals private banking unit in Luxembourg, in a bid to expand its presence in the Benelux area.
The transaction, worth about €68m is due to be finalised in the summer of 2016, subject to regulatory approval. Commerzbank International SA Luxembourg currently manages €3bn is assets.
After closing, Julius Baer’s Luxembourg-based business will manage total assets of around CHF 5 (€4.63) billion on a pro forma basis.
Boris Collardi, CEO of Julius Baer, commented: “The acquisition of a fully-licensed bank in Luxembourg as well as the Temenos-based booking centre and the related IT expertise provide us with important strategic flexibility for our European businesses. Furthermore, it strengthens the implementation of our global banking platform project by aligning Europe with our Swiss and Asian platform strategy, thus reducing the execution risk.”