In what appears to be the final stage of bidding for Belgian private bank Degroof Petercam, two foreign banks are set to battle it out, Flemish daily De Standaard reported on Thursday, citing ‘several observers’. The bidding process for Degroof Petercam is expected to be completed this month.
The asset management firm, currently owned by prominent families including the beer-brewing De Spoelberch family and the shipping Cigrang family, is likely to be taken over by French banking giant Crédit Agricole or a yet unidentified Swiss asset manager, the press report said.
Degroof Petercam is a major independent asset manager and holds some 70 billion euro in client assets, 42.2 billion of which is under asset management. The firm in May confirmed that some of its current owners were willing to sell its shares and that an investment bank had been appointed to manage the sale.
Stronger foothold in Belgian market for Swiss or French
According to De Standaard, the sale of the asset manager represents an opportunity for companies looking to gain a stronger foothold in the Belgian market. Several potential buyers, including the Belgian state bank Belfius, ABN Amro, France’s Crédit Agricole, and two Swiss firms, one of which is Lombard, have been named.
Observers, however, suggest that Crédit Agricole and a Swiss group are holding the best cards. Belfius is believed to be out of the running. The potential price tag stands at €1.5 billion.
The potential shift of Bank Degroof Petercam to foreign ownership could dilute Brussels’ standing as a financial center even further, De Standaard reported. The city is increasingly becoming an administrative hub, relying on the presence of European institutions.
This change, largely triggered by the fall of Fortis in 2008, continues to have a significant impact. Crédit Agricole, the French major bank, has a limited presence in Belgium. In the past, it held a significant share in Crelan bank, which it sold to the cooperative funds around Crelan in 2014. Bank Degroof Petercam employs around 1,400 people.