DekaBank Deutsche Girozentrale Luxembourg, the Sparkassen-owned asset manager, will acquire WestLB International, a Luxembourg-domiciled subsidiary of WestLB, subject to approval, in an attempt to focus on core competences.

DekaBank said it secured the contract following a competitive bidding process. The parties have decided not to disclose details of the purchase price.

The acquisition of WestLB will “reduce non-essential strategic activities, thereby implementing a corresponding decision of the European Commission,” according to the bank’s statement. WestLB is now thought to be concentrating on transaction banking and capital markets, corporates and structured finance.

“The sale offers advantages for both sides. WestLB International  and its highly qualified workforce will acquire a strong partner in DekaBank. For WestLB the sale marks a further step towards focusing on its core competences,” said Hubert Beckmann, vice-chairman of the firm’s managing board.

DekaBank says that the full range of existing products and services will remain available to the clients of WestLB and that its employees will continue to offer their advice under the umbrella of DekaBank Luxembourg.

The deal is expected to be completed on 1 January 2011.