After months of wrangling, shareholders of the Dutch-Belgian banking group Fortis have approved last October’s original deal to sell part of its operations to French bank BNP Paribas, a move that creates one of the world’s biggest wealth managers.

Shareholders of Fortis SA/NV and Fortis NV have voted in favour of the transactions with the Belgian state and BNP Paribas, which means BNP Paribas will acquire 75 per cent of Fortis Bank SA/NV, while they have also approved of the move selling 25 per cent of Fortis Insurance Belgium. In March, BNP Paribas, the Belgian government and Fortis Holding struck a revised deal after an earlier plan was rejected by a slim majority of Fortis shareholders.

BNP Paribas had originally agreed to pay €14.5 billion ($19.2 billion) to the Belgian government for 75 per cent of Fortis Bank Belgium and all of its Belgian insurance business. Fortis Holding shareholders objected to that deal, which left it with a small business containing toxic assets and international insurance activities.

Fortis, a former Dutch-Belgian financial giant, was taken over by the Belgian and Dutch governments last year after running into severe financial difficulties.

“We are wasting no time in defining a detailed strategy for the future - and we do so knowing that the majority of shareholders are behind us,” said Karel De Boeck, Fortis’ chief executive, in a statement after the shareholders gave approval.

On 6 October last year, BNP Paribas said that as a result of the acquisition agreed at that date, the wealth management arm of the combined firm would have €209 billion of assets under management and be the largest private banking operation in the euro-zone. It is probable that the total size of assets under management has declined since then although exact figures will not be available until 6 May, when BNP Paribas gives its next results update, a spokesman for BNP told WealthBriefing yesterday.

The sale of much of Fortis’ business was one of the most dramatic examples of how banks that once aggressively acquired other firms during the merger and acquisition boom of two years ago have subsequently sold off assets or been sold themselves to repair their ravaged balance sheets. Fortis, in a deal with the-now embattled UK bank Royal Bank of Scotland and Spain’s Santander, bought Dutch bank ABN Amro in 2007, beating off a rival bid for ABN Amro by UK’s Barclays. Subsequently, the acquired ABN Amro assets have had to be spun off by Fortis.

Recently, BNP Paribas Private Bank in Asia told WealthBriefing that it  looking forward to the likelihood of adding Fortis’ private client business to a business that currently employs 700 people and looks after around $30 billion in client assets.

Serge Forti, who is head of the French bank’s wealth management business in Asia, said he views his operation as being at the top of the second tier of wealth managers in the region. But with the acquisition of Fortis Private Client business in Asia, between 40 and 60 relationship managers will be added to the 200 or so already on BNP Paribas’ books.

BNP Paribas plans to take the best of the Fortis front office and also to benefit from operational savings. The acquisition will also give the French bank a chance to upgrade ex-Fortis clients to more sophisticated BNP Paribas products, especially fixed income and foreign exchange, the firm said in an interview.

“Fortis has been good in discretionary portfolio management and has a good reputation for commodities,” Mr Forti said.

BNP Paribas’ approach is to be not too aggressive, although Mr Forti said a conservative approach in the Asian market would mean no business. The bank lost clients in 2007 and the start of 2008 as it was seen as being not aggressive enough.

But now BNP Paribas is seen as being one of the strongest banks and has seen huge new cash deposits since last September. And when there have been losses all clients have honoured their commitments, Mr Forti said.

“BNP Paribas learnt lessons of the 1997 Asian crisis that everyone in banking should have learnt – that is not to over-leverage. We have had some bad news but not as much as other banks so it’s been very easy to attract clients,” he said.

In the region, the Paris-based bank is hiring 110 to set up a global IT development hub. Forty were employed last year and another 70 are expected to be brought on board this year.

And in the front office the bank will hire in Asia if there are good opportunities, Mr Forti told WealthBriefing.

“2009/2010 will be a positive year for BNP Paribas wealth management. The business has not been de-stabilised and relationship managers have the opportunity to fight,” he said.