Dutch bank ABN Amro has announced the acquisition of German private bank Hauck Aufhäuser Lampe, also known as HAL, from Chinese investment company Fosun International. HAL’s asset services activities in Luxembourg and Ireland are excluded from the transaction.
ABN said it agreed to pay 672 million euro for HAL. The deal, it said, aims to enhance its wealth management offerings for both private and corporate clients in Germany’s significant private banking market. The move adds some 26 billion euro to ABN Amro asset under management in Germany and will bring the bank’s combined assets here to 70 billion euro. HAL’s private banking business will be joining forces with Bethmann Bank, ABN Amro’s German subsidiary.
Germany’s private banking market is considered attractive as significant volumes of entrepreneurial wealth slowly are shifting to a new generation. The market also is seen as very competitive. Swiss private bank Pictet for example last year moved its European headquarters from Luxembourg to Frankfurt. The presence of the European Central Bank as well as the proximity of the European head offices for many other financial institutions has meanwhile raised the profile of Frankfurt as a financial capital.
Choy van der Hooft-Cheong, head of the wealth management division at ABN Amro, said the deal allows it to expand and improve products and services. In a statement, HAL CEO Michael Bentlage said the transaction “positions us as a leading player in German private banking”.
Hafs, Haas and Halfi excluded from deal
The acquisition does not include the Luxembourg and Irish subsidiaries of the asset servicing division: Hauck & Aufhäuser Fund Services (Hafs) and its subsidiaries Hauck & Aufhäuser Administration Services (Haas) and HAL Fund Services Ireland (Halfi).
“Fosun remains the owner of these companies, which fit well into its asset-light model approach and have clear synergies with its activities in the European insurance sector,” a statement issued in Frankfurt said. “Fosun aims to further develop the functions of AIFM/ManCo and fund administration and grow internationally in the future. The focus will continue to be on a cross-company one-stop-shop model, including custodian services.”
Shanghai-based Fosun, controlled by Chinese billionaire Guo Guangchang, also known for his investments in Club Med and British football team Wolverhampton Wanderers, has been pressed to sell assets and has flagged to its investors it wants to reduce its debts by 1.38 billion dollars per year during the next three years. Proceeds of this sale will be used to “replenish general working capital,” it said on Tuesday. The deal is the second asset sale conducted by Fosun in Europe since mid-April. Last month, Fosun sold an 8.2 per cent stake in Belgian insurer Ageas to BNP Paribas for 670 million euro.
HAL said that a cooperation agreement has been concluded with ABN Amro to pursue new opportunities in the AIFM/ManCo and fund administration sectors. With some 104 billion euro in assets under management, HAL’s asset services activities have made it the second-biggest Alternative Investment Fund Manager (AIFM) in Luxembourg, and the third-biggest third-party management company, next to Frankfurt-based Universal-Investment and Dublin-headquartered Carne Global.
German expansion for ABN Amro
ABN Amro’s board chairman, Robert Swaak, described the deal as a “unique opportunity” to expand the bank’s German operations. “We are very pleased to have been able to close this deal. HAL is a traditionally leading asset manager and fits very well with ABN Amro, both culturally and geographically,” he added.
Germany, the largest private banking market in Europe, presents a lucrative opportunity for ABN Amro to bolster its wealth management, asset management, and entrepreneur & enterprise divisions. The acquisition also allows ABN Amro to enter the market for wealth management services, particularly as a securities depository for non-liquid assets.
“Hauck Aufhäuser Lampe, with its comprehensive range of services, represents an ideal complement and expansion to ABN Amro’s offerings in Germany,” said Hans Hanegraaf, CEO of Bethmann Bank and chief country officer of ABN Amro Germany, in a statement. “I look forward to working with the competent teams at HAL and am confident that the cultures of our two institutions will be a great fit. Together, we aim to shape the future of banking in Germany.”
Synergies
Bethmann Bank, ABN Amro’s local private bank, is already one of Germany’s largest private equity banks for high-net-worth clients. With HAL’s addition, ABN Amro plans to offer HAL’s securities depository and digital fund management services to all its customers in the future.
The acquisition of HAL will add approximately 26 billion euro to ABN Amro’s assets under management in Germany, along with 2 billion in loans. ABN Amro anticipates achieving around 60 million euro in cost synergies over the next three years.
The transaction remains subject to regulatory approval and is expected to close in the first quarter of 2025.
This acquisition is not ABN Amro’s first foray into the German market. In 2014, the bank completed the acquisition of Credit Suisse’s German private banking business, making Bethmann Bank the third-largest private bank in Germany at the time. This earlier move was part of ABN Amro’s strategy to reduce its dependency on the Dutch market and expand its international footprint, particularly in private banking.
ABN Amro’s consistent expansion in Germany reflects its commitment to strengthening its position in Europe’s most significant private banking market. The integration of HAL’s robust asset management capabilities further underscores ABN Amro’s strategic ambitions and growth trajectory in the region.