M and A
Geneva-Based Bank Acquires Assets As M&A Trend Continues
Another Israel-based bank has sold a European business to a Swiss wealth management operation this week.
IDB (Swiss) Bank, an affiliate of the Israel Discount Bank group, and Hyposwiss Private Bank Genève have signed an agreement to transfer the former's client banking relationships and assets to Hyposwiss in the wake of a merger deal.
This transaction is subject to approval by the Swiss regulatory authorities. Financial terms of the deal were not disclosed.
Hyposwiss, after completing in 2014 its merger with Mirelis InvesTrust SA, continues its expansion with the acquisition of the clients’ assets from IDB.
The move is part of continuing merger and acquisition transactions in Switzerland and other parts of Europe, as firms either seek to spin off businesses that are sub-scale or as others bulk up on assets to increase efficiencies and mass. And yesterday’s announcement represents the second case of an Israel-based bank group selling part of its operations: Switzerland-based Banque J Safra Sarasin agreed this week to acquire Bank Leumi’s Luxembourg private banking business for an undisclosed sum. The agreement covers qualifying clients and their relationship management teams serving ultra-high net worth and HNW clients. (See more on that story here.)
The Hyposwiss shareholding structure remains unchanged and is principally held by members of the Lawi and Kadoorie families, an active partnership for three generations within Geneva's banking and financial industry, the entities said in a statement yesterday.
IDB (Swiss) Bank manages SFr1.35 billion ($1.33 billion) in assets under management.
The agreement will help Hyposwiss to grow its assets under management and diversify its customer base in markets such as Switzerland, Europe, the Middle East, Latin America and some emerging countries, the statement said.
“This expansion is part of a medium-term growth strategy to optimise costs and returns. This consolidation of resources, at all levels, allows us to face with confidence the current reforms of the international financial system,” Solly Lawi, chairman of Hyposwiss, said.
