The Indian family-owned investment firm Hinduja Group said it has agreed to buy the private banking arm of Belgian firm KBC Group for 1.35 billion euros.
The deal comprises the sale of KBC’s entire interest in KBL European Private Banking and includes all the private banking subsidiaries as well as the custody and life insurance businesses.
KBL EPB is one of Europe’s largest onshore private banking groups with affiliated local banks in 55 locations across ten European countries. The sale is expected to close in the third quarter this year.
“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.
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,” said Mr Srichand P. Hinduja, chairman of the Hinduja group.
The Hinduja group has a presence in the banking business since 1914 through Hinduja Bank Switzerland in Europe and IndusInd Bank in India.
This divestment by KBC is the largest in a restructuring plan required by the EC in return for 7 billion euros of state aid. At the end of 2009, KBL EPB had 47 billion euros assets under management and 37 billion euros assets under custody.