Swiss private bank Vontobel has agreed to acquire 100% of Notenstein La Roche Private Bank from Raiffeisen Switzerland in a deal worth around CHF700m.
Notenstein La Roche has 13 branches in Switzerland and manages nearly CHF16bn in client assets. Majority of its clients are in Switzerland. The Swiss private bank also caters to clients in other international markets, including Germany.
The sale frees up regulatory capital that can be utilised to grow Raiffeisen’s core business, Vontobel said.
Raiffeisen Switzerland chairman of the executive board and Notenstein La Roche chairman of the board of directors Patrik Gisel said: “The decision to sell does not represent a move away from Raiffeisen’s diversification strategy.
“On the contrary, we want to focus on our established client base, which also includes wealthy private clients, and expand it together with our Raiffeisen banks by offering an even broader and more effective range of products and services.”
The deal is expected to be close in the third quarter of this year, subject to regulatory approval. The deal will be funded using Vontobel’s available capital and an additional Tier 1 bond.
Vontobel CEO Zeno Staub said: “The acquisition of Notenstein La Roche and its branch network strengthens our service offering on our home market and vindicates our claim to be a leading global wealth manager with solid Swiss roots. Our future clients will benefit from the opportunities and expertise offered by an internationally active Swiss wealth manager that puts clients at the centre of everything it does.”