Brazilian manager BTG Pactual has completed the acquisition of Swiss private bank BSI from Assicurazioni Generali for some CHF1.25bn (€1.14bn).
The acquisition has been approved by the Swiss financial market supervisory authority (FINMA) and the Brazilian central bank.
It creates a global private banking franchise with assets under management totalling $186.5bn (€166bn). BTG Pactual’s total assets under management on 30 June 2015 were $98.9bn(€88bn), while
BSI’s AUM on 30 June 2015 were $87.6bn (€78bn).
Both companies announced that the BSI brand will be maintained and BSI will become BTG Pactual’s global wealth management and private bank platform.
For BTG Pactual, BSI represents a further diversification in its revenue mix with an increased contribution to fee income, as well as a greater international presence.
By acquiring BSI, BTG Pactual’s number of employees increases from 3,500 to 5,400, of which around half will be employed outside Latin America and spread across more than 29 countries.
“The acquisition of BSI is complementary to BTG Pactual´s existing business and creates a further diversified and global platform”, said Marcelo Kalim, BTG Pactual’s chief financial officer.
“The combination of the two banks will offer a wide range of international products and services tailored to clients’ needs,” Kalim commented.
Joseph Rickenbacher will be appointed as new chairman of BSI effective as of 16 September, replacing Alfredo Gysi who steps down from the role.