EFG International has secured the regulatory nod from the Swiss Financial Market Supervisory Authority FINMA for its proposed acquisition of Grupo BTG Pactual’s Swiss private banking unit BSI.
The approval comes after BSI Bank was ordered to shut down its Singapore operations due to serious breach in money-laundering rules, poor management oversight, and gross misconduct by some of its employees in connection with Malaysia’s 1MDB fund.
Go deeper with GlobalData
Access deeper industry intelligence
Experience unmatched clarity with a single platform that combines unique data, AI, and human expertise.
Singapore’s financial regulator MAS said that the bank would now lose its merchant banking status in Singapore.
The acquisition was approved by the Swiss regulator on the condition that BSI will be fully integrated within EFG.
In February 2016, EFG agreed to acquire BSI in a cash and shares deal valued at CHF1.33bn.
However, EFG said that the fine will lead to a reduction of the acquisition price for BSI. The deal is expected to be closed in the fourth quarter of 2016 as originally announced, EFG said.
US Tariffs are shifting - will you react or anticipate?
Don’t let policy changes catch you off guard. Stay proactive with real-time data and expert analysis.
By GlobalDataEFG International CEO Joachim Straehle said: "The approval of the transaction clears the way for a swift and orderly closing and will give comfort to clients, employees and other stakeholders.
The transaction is in the best interests of clients and the Swiss financial sector. With the many employees that display professionalism, knowledge and integrity every day at both banks, I’m convinced we have a successful future ahead of us. We will work with BSI to ensure a smooth transfer of clients and employees. We would like to thank FINMA for the good collaboration and the prompt attention."
