Dutch government-backed ABN Amro has agreed to buy private bank Hauck Aufhäuser Lampe (HAL) for 672 million euros ($730 million). This ABN AMRO Fosun deal would strengthen its position as one of the top three wealth management firms in Germany.
Bethmann Bank AG, ABN Amro’s private banking arm in Germany, will add €26 billion in assets under management and €2 billion in loans after the acquisition, according to a statement from the Amsterdam-based lender Tuesday. That will bring combined assets under management to around €70 billion.
ABN AMRO Fosun deal
The sale by Fosun International comes as the Chinese conglomerate, once one of the country’s most acquisitive, seeks to pare down its portfolio.
“This is a rare opportunity to add scale to our German activities,” ABN Amro CEO Robert Swaak said in the statement.
“The proposed acquisition will further strengthen our position and offer employees of the combined group the opportunity to play a driving role in the consolidating German market,” he added.
Germany is the largest private banking market in Europe.
ABN AMRO buy Hauck
ABN AMRO acquisition, which is expected to close in the first quarter of 2025, will increase assets under management by 26 billion euros and add 2 billion euros in loans.
earlier this year, it saw growth in wealth management as a way to offset an expected decline in lending revenue. The company aims to make fees “a more important part of our income” to reduce its dependency on interest income, Chief Financial Officer Ferdinand Vaandrager said in the firm’s annual report. That includes seeking “strategic initiatives” to expand the business with affluent clients, he said.
Fosun’s Hauck & Aufhäuser
Founded in 1796, Hauck & Aufhäuser is one of Germany’s oldest banks. Fosun bought the company in 2015 and snapped up its domestic rival Bankhaus Lampe in 2021. The Chinese conglomerate, backed by billionaire Guo Guangchang, has been selling assets as it seeks to reduce its debt load following an acquisition spree.
Fosun said in a statement that it will use the sale proceeds for general working capital.
This year, it has stepped up efforts to streamline its assets. In April, Fosun sold a 9% stake in Belgium insurer Ageas to BNP Paribas for 730 million euros.
It is also exploring a sale of all or part of its luxury resort Atlantis in southern China as part of its efforts to reduce debt, sources have said.
Sources have also said it is open to selling its remaining 20% stake in Portugal’s Millennium bcp after disposing of some shares earlier this year.
Fosun, whose businesses range from healthcare to oil and gas, acquired HAL in 2016.
Impact of ABN AMRO acquisition
The impact of the acquisition on ABN Amro’s CET1 ratio is expected to be around 45 basis points, according to the statement. The units of Hauck & Aufhäuser that provide alternative investment funds, management company and fund administration services aren’t part of the deal.
Some of HAL’s units, such as those that provide alternative investment fund management or fund administration services will not be part of the acquisition.
