KBL European Private Bankers (KBL epb) has agreed to acquire UBS operations in Belgium through its affiliate Puilaetco Dewaay, the Luxembourg-headquartered bank has announced.
The deal – terms of which have not being disclosed – will bring to the bank over 3 billion ($3.74bn) in assets under management (AuM), 2,500 clients and 60 staff, including 20 private bankers.
Go deeper with GlobalData
Combining the two Belgian businesses, Puilaetco Dewaay will then manage more than 10bn in AuM and serve nearly 10,000 clients.
The move comes as KBL epb continues to "actively review additional acquisition opportunities in the bank’s core markets", Group CEO Yves Stein said.
With the acquisition, expected to close in 2015 subject to regulatory approvals, the 146-year old Belgium bank will operate under the brand name "Puilaetco Dewaay Private Bankers." The newly formed business will provide access to both advisory and discretionary services for HNWIs.
Thierry Smets, CEO of Puilaetco Dewaay Private Bankers said: "Building upon our strong recent growth, this transaction represents an outstanding opportunity, in a highly competitive environment, to rapidly expand our team, meet increased demand and lay the foundation for accelerated future growth."
How well do you really know your competitors?
Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.
Thank you!
Your download email will arrive shortly
Not ready to buy yet? Download a free sample
We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form
By GlobalDataAlthough not providing separate figures for its Belgium firm, KBL epb told PBI that Puilaetco Dewaay "performed very well" in the last two years, growing organically, and reaching 200 staff.
When asked by PBI about why the bank chose to expand through acquiring a new external business, a KBL’s spokesperson said: "One way to grow – organically or inorganically – doesn’t really exclude the other. Of course, growing inorganically is an opportunity to increase AuM more rapidly and, of course, decrease operating costs."
One of the reasons for the bank’s expansion in the country is to benefit KBL’s clients who seek banking opportunities in Belgium as many of them are increasingly repatriating their wealth, the group’s spokesperson also explained.
As previously reported by PBI, KBL epb has been looking at expanding in core existing markets inside Europe. The lender has previously also revealed that there were "ongoing discussions over potential deals, including acquisition prospects in the UK".
KBL epb was among the final and "disappointed" bidders for Credit Suisse’s German private banking business last year, which saw ABN AMRO’s Bethmann Bank snapping up the unit.
René Mottas, head of Wealth Management Benelux, UBS, said: "The choice of Puilaetco Dewaay is based on our conviction that the philosophy of the two firms is very similar: to advise and help clients protect and grow their wealth over the long term, as a trusted independent partner. We are pleased to have identified a leading wealth manager in Europe as a strong and reliable new partner for our loyal clients in Belgium."
Swiss banking giant UBS has been recently under investigation both in Belgium and France for allegedly helping wealthy clients avoid taxes.
Earlier this year, Marcel Bruehwiler, CEO of UBS’s Belgium unit, had been charged with organised crime, money laundering, illegal practise as a financial intermediary and serious organised fiscal fraud.
