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ABN Amro has agreed to purchase German non-public lender Hauck Aufhäuser Lampe for €672mn from Chinese language conglomerate Fosun, because the Dutch financial institution bets on rising demand for monetary recommendation from rich households in Europe’s largest economic system.
The acquisition will flip ABN Amro, which already owns German non-public lender Bethmann Financial institution, into the nation’s third-largest wealth supervisor, the Dutch financial institution stated on Tuesday.
ABN Amro is paying money for Hauck Aufhäuser Lampe, which was based within the late 18th century however since 2016 has been owned by Fosun. It manages €26bn in belongings for rich shoppers and in addition affords company banking companies to family-owned companies.
Robert Swaak, chief govt of ABN Amro, stated the deal was a “uncommon alternative” to enlarge its German operations, describing the goal as a “very sturdy match . . . each culturally and geographically”. Hauck Aufhäuser reported €83mn in web revenue in 2023.
With the windfall from greater rates of interest fading, ABN Amro has been in search of to diversify its revenues and has focused wealth administration. Shares within the firm are up 8 per cent over the previous yr whereas Fosun Worldwide shares, listed in Hong Kong, have fallen 10 per cent over the identical interval.
Fosun was among the many wave of Chinese language corporations that expanded aggressively abroad earlier than the pandemic, snapping up belongings together with French resort group Membership Med and English Premier League soccer membership Wolverhampton Wanderers.
Nonetheless, it has since been disposing of belongings as greater rates of interest take their toll on the extremely leveraged group. Fosun stated on Tuesday that the sale of Hauck Aufhäuser was half its “effort of streamlining its portfolio and enhancing asset-light operation technique”.
Earlier this yr, Fosun bought a 9 per cent stake in Belgium insurer Ageas to BNP Paribas for €730mn.
ABN Amro, which expects the transaction to shut within the first quarter of subsequent yr, plans to make €60mn in annual price synergies over three years. The Chinese language conglomerate will maintain Hauck Aufhäuser’s asset servicing operations which can be based mostly in Luxembourg and Eire.
The Dutch financial institution has owned Bethmann Financial institution, which was based in 1712 and counted Austrian archduchess Maria Theresa and Russian emperor Alexander I amongst its shoppers, since 2004. Final yr, it acquired the 9,000 German wealth administration shoppers of Credit score Suisse.