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Julius Baer Completes Acquisition of Luxembourg Private Bank

Amisha Mehta, Deputy Editor, 5 July 2016

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The Swiss private bank has boosted its Luxembourg presence, adding €2.5 billion of assets with the deal.

Julius Baer has completed its acquisition of Commerzbank International S.A. Luxembourg (CISAL).

CISAL, which has around €2.5 billion ($2.8 billion) of assets under management and 150 employees, will now operate under the name of Bank Julius Baer Luxembourg, headed by CISAL’s former chief executive, Falk Fischer. 

Meanwhile, Thomas Fehr, former branch and country manager, Luxembourg, at Commerzbank, has been appointed chief operating officer and member of the executive board of the bank in Luxembourg.

A total of €78 million, including €35 million of regulatory capital transferred as part of the transaction, was paid in cash. Total restructuring and integration costs are estimated to reach around €20 million.

Julius Baer is already active in Luxembourg through its local entity, Julius Baer Investment Services. The deal provides the bank with a booking centre in the country, with client assets booked on CISAL's Temenos T24 banking platform.

“CISAL is a high-quality franchise, which will enable us to further expand our footprint in this important financial centre. Additionally, the Luxembourg banking licence and CISAL’s T24 platform and expertise offer clear benefits for the group as a whole,” said Gian Rossi, Julius Baer's head of Northern, Central and Eastern Europe.

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