EFG International said that it is on track to close the acquisition of Grupo BTG Pactual’s Swiss private-banking division BSI by the end of this year, as was previously announced.
The company added that the deal would lead to cost synergies of about CHF185m by 2019. This includes about CHF100m from IT due to the decision to operate the combined entity on EFG’s core banking platform.
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EFG International CEO Joachim Straehle said: "Preparations for the business combination of EFG and BSI to create a leading Swiss private bank have gotten off to a good start. With their strong focus on private banking, the two banks have a lot in common, and by joining forces, we will be able to make an attractive value proposition to clients, employees and shareholders.
"With a view to the future business, we have decided that the combined bank will operate on EFG’s core banking platform from 2018 onwards due to the lower costs that will ensue. We will continue to build on the considerable strengths both of EFG and BSI to achieve joint success."
EFG agreed to acquire BSI in a cash and shares deal worth CHF1.33bn ($1.38bn) in February 2016.
The combined entity is expected to create one of the largest private banks in Switzerland, with nearly CHF170bn in assets under management.
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