- Deal to boost its top 3 wealth management position in Germany
- Purchase expected to close in first quarter of 2025
- Fosun has stepped up efforts to sell assets
May 28 (Reuters) - Dutch lender ABN Amro has agreed to buy private bank Hauck Aufhäuser Lampe (HAL) for 672 million euros ($730 million), strengthening its position as one of the top three wealth management firms in Germany.
The sale by Fosun International comes as the Chinese conglomerate, once one of the country's most acquisitive, seeks to pare down its portfolio.
"This is a rare opportunity to add scale to our German activities," ABN Amro CEO Robert Swaak said in the statement.
"The proposed acquisition will further strengthen our position and offer employees of the combined group the opportunity to play a driving role in the consolidating German market," he added.
Germany is the largest private banking market in Europe.
The purchase, which is expected to close in the first quarter of 2025, will increase assets under management by 26 billion euros and add 2 billion euros in loans.
Some of HAL's units, such as those that provide alternative investment fund management or fund administration services will not be part of the acquisition.
Fosun said in a statement that it will use the sale proceeds for general working capital.
This year, it has stepped up efforts to streamline its assets. In April, Fosun sold a 9% stake in Belgium insurer Ageas to BNP Paribas for 730 million euros.
It is also exploring a sale of all or part of its luxury resort Atlantis in southern China as part of its efforts to reduce debt, sources have said.
Sources have also said it is open to to selling its remaining 20% stake in Portugal's Millennium bcp after disposing of some shares earlier this year.
Fosun, whose businesses range from healthcare to oil and gas, acquired HAL in 2016.
($1 = 0.9206 euros)
Reporting by Nilutpal Timsina in Bengaluru and Yantoultra Ngui in Singapore; Editing by Edwina Gibbs
Source: Reuters