Liechtenstein-based VP Bank has agreed to acquire the Luxembourg private banking activities of Catella Bank for CHF12m ($12.01m).
VP Bank Group said it continues to selectively purchase entities which match its existing footprint.
VP Bank (Luxembourg) will take over the private banking business of Catella Bank in Luxembourg.
The deal includes the purchase of about 10 employees and client assets of around CHF900m ($900.62m).
VP Bank also stated that the former private banking customers of Catella Bank, who are exclusively European clients, will continue to be taken care of by their personal advisor in Luxembourg and can also benefit from the support of VP Bank Group.
VP Bank Group CEO Alfred W. Moeckli said: “The transaction with Catella Bank S.A. underscores our growth ambitions. Due to its international orientation, strong balance sheet and comparable ownership, VP Bank Group has ideal conditions to rapidly integrate the acquired customers and employees.”
The transaction does not include the private banking business of Catella Bank in Sweden. The Liechtenstein-based bank will also enter into a distribution partnership with the Catella Group in the fund and real estate sector.
The transaction is expected to be completed by next February at the latest.
Catella Group CEO Knut Pedersen said: “VP Bank has the ambition and capacity to further develop the private banking offer to Catella’s wealth management-customers in Luxembourg. Catella and VP Bank will also enter a distribution partnership to develop and provide products for the Nordic and European markets. This provides a great opportunity for Catella to distribute alternative products through a large and credible partner.
“The transaction is also an important step towards a more efficient capital-structure and less extensive regulatory framework.”
Recently, VP Fund Solutions has assumed management company activities of Carnegie Fund Services effective. This custodian function has been exercised by the bank (Luxembourg).
At the same time, the portfolio management will continue to be performed by Carnegie Investment Bank Stockholm and Copenhagen.
The transaction includes all of the Luxembourg investment funds of the Carnegie Investment Bank in Sweden and Denmark and it amounts to €1bn.