VP Bank, a Liechtenstein-based private bank, has agreed to acquire the private banking operations of Öhman Bank in Luxembourg for an undisclosed sum.
Set up in 2006, Öhman Bank is the international private banking unit of Swedish financial group Öhman.
The bank’s services suite includes asset management, securities trading, financial consulting, financing as well as securities custody.
VP Bank carried out the deal through its subsidiary VP Bank (Luxembourg).
Upon closing of the deal, which is anticipated by next January, VP Bank will acquire around €760m in client assets.
Commenting on the deal, VP Bank Group CEO Paul Arni said: “VP Bank Group continues to focus on acquisitions that fit its strategy and culture.
“The transaction with Öhman Bank S.A. is in line with the growth objectives of our “Strategy 2025″ and makes a significant contribution to the expansion of our activities in the Luxembourg as well as Scandinavian markets.”
As part of the deal, VP Bank will also absorb an 11-member client adviser team.
Öhman Bank’s private banking customers, mainly consisting of Scandinavian entrepreneurs and investors, will continue to be served by their personal adviser in Luxembourg.
VP Bank Group senior adviser and former head of Client Business Christoph Mauchle said: “Thanks to its established network in the Scandinavian region as well as comparable digital platforms, VP Bank Group has the ideal prerequisites for rapidly integrating the acquired clients and employees.”
Established in 1956, VP Bank has offices in Vaduz, Zurich, Luxembourg, Singapore, Hong Kong and Road Town on the British Virgin Islands.
The firm had an employee strength of 943 and AUM of CHF47.6bn at the end of 2019.
The Öhman deal bolsters VP Bank’s position in the Nordic market.
Last year, the bank purchased the Luxembourg private banking business of Catella Bank.
In 2018, it snapped up the Luxembourg investment funds business of Sweden’s Carnegie group.