Hinduja Group, a diversified global business conglomerate, today announced that it would acquire European private bank KBL epb for euro1.35 billion (about Rs 8,770 crore).
KBL epb, a subsidiary of Belgium-based KBC Group, is one of the largest onshore private banking groups with affiliated local banks in 55 locations across ten European countries.
Private banking refers to customised service, including wealth management, provided to high networth individuals.
As part of the deal, the Hinduja Group will acquire KBC's entire interest in the subsidiary including all the private banking subsidiaries and life insurance businesses. KBL epb had assets under management of euro 47 billion.
The closing of the transaction is subject to regulatory approvals and is expected to be completed in the third quarter of 2010, a joint statement said.
"We plan to invest further in the business, maintaining each of the subsidiaries, while also providing KBL epb with access to the fast growing markets of the Middle East, the Indian subcontinent and Asia," said Hinduja Group chairman Srichand P Hinduja.
"In this way, we hope to address the private banking needs of clients internationally and facilitate capital flows between fast growing economies and established Western financial markets," he said.
The group's banking business includes Hinduja Bank Switzerland, a private bank active across Europe, the Middle East and India in wealth management, private banking, trade finance and corporate advisory services.
Besides, Hinduja Group is the promoter of IndusInd Bank which commenced its operations in 1994.
The group would ensure that clients continue to receive exemplary service from a highly-motivated staff working in a new and secure environment, he said.
Commenting on the transaction, KBC Group CEO Jan Vanhevel said, "With this divestment, we are releasing a significant amount of capital and further strengthening the KBC group, with its focus on its core bancassurance expertise and markets (Belgium, Central and Eastern Europe), and with its reduced risk-profile."
