Kleinwort Benson Group (KBG), the wholly-owned subsidiary of RHJ International (RHJI), has received approval from the Germany’s financial regulator Bafin to acquire Deutsche Bank’s BHF-Bank subsidiary.
As per the agreement, KBG will acquire 91% stake in BHF for 322 million (US$442.3 million) in cash, while RHJI will acquire the remaining 9% stake directly by issuing RHJI shares to Deutsche Bank at par value.
RHJI said the deal will combine BHF with Kleinwort Benson Group and will add BHF’s strengths in private banking, asset management, German Mittelstand corporate banking and financial markets to KBG’s existing strengths in wealth and asset management.
The agreement will also capture synergies by combining the back office functions of the two wealth management businesses.
The deal will follow RHJ International’s strategy to deliver a strong, diversified financial services group that will enhance growth and value creation for its clients and shareholders.
The deal, which is subject to certain customary closing conditions, is expected to close before the end of March.
Following the deal, RHJI will hold a 65% stake in Kleinwort Benson, while the remaining 35% is divided among the three co-investors -Fosun Group, AQTON SE, a company of German entrepreneur Stefan Quandt, and entities affiliated with Timothy Collins.
Leonhard Fischer, CEO of RHJ International and Kleinwort Benson Group, said: "This is the culmination of an intensive process in Germany, but more importantly a long transitional journey for RHJ International into a diversified financial services business. With the removal of the strategic uncertainty which has overhung RHJI during this approval process, we look forward to the opportunity to bring these businesses together successfully to deliver outstanding customer service and drive shareholder value."