VP Bank (Luxembourg) has agreed to buy the wealth management operations of Catella Bank in Luxembourg in a deal worth around SEK110m ($12m).

The deal, which follows a strategic review, includes the transfer of nearly CHF900m ($900.3m) in client assets and around 10 staff.

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However, Catella Bank plans to retain its client relationships in the region.

Furthermore, the two parties also signed a distribution alliance in the fund and real estate sector.

VP Bank Group CEO Alfred Moeckli said: “The transaction with Catella Bank S.A. underscores the growth ambitions of VP Bank Group and contributes significantly to the expansion of our activities in the Scandinavian market.

“Due to the international orientation, strong balance sheet and comparable ownership of VP Bank, we have ideal conditions to rapidly integrate the acquired customers and employees.”

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The transaction is expected to close on 1 February 2019 and does not include Catella Bank’s Swedish private banking operations.

Commenting on the deal, Catella Group CEO Knut Pedersen said: “This provides a great opportunity for Catella to distribute alternative products through a large and credible partner.

“The transaction is also an important step towards a more efficient capital-structure and less extensive regulatory framework.”

Catella covers property investments, fund management and banking services. The group manages around SEK200bn ($22bn) in assets and has operations in 14 countries. The latest sale is expected to reduce the group’s balance sheet by around SEK2bn ($219.1m).