The transaction was approved by the appropriate supervisory authorities and is aligned with the strategy of the group to expand its ultra-high net worth client base in Europe, Banque Havilland said yesterday.

It said the deal will boost its standing in the European wealth management market and will provide it with a platform to service investment funds and institutional clients.

Responding to questions from WealthBriefing, Banque Havilland said there will be no office closures as a result of the deal. "All staff of BPL are transferring to Banque Havilland Institutional Services SA thus ensuring a continuity of service," a spokesperson said. The corporate branding of the acquired business is still being worked upon.

“It was a logical flow from the private banking services, in response to the client’s demands and their increasing appetite for investment fund products,” said Jean-François Willems, chief executive.

The deal comes amid continued merger and acquisition activity in the European wealth management industry. For example, Switzerland-listed EFG International has agreed to buy Lugano-headquartered BSI from its Brazilian owners, BTG Pactual; Liechtenstein’s VP Bank Group bought Centrum Bank last year; Royal Bank of Canada has sold its Swiss private banking unit to Banque SYZ.

Such moves come at a time when acquirers are seeking to build scale, while vendors are consolidating booking centres and focusing on markets where they see more profitable potential. 

Banque Havilland will continue to provide services for the Banco Popolare Luxembourg private and institutional clients, allowing them to retain their investment relationships.

Banco Popolare Luxembourg, which started operations in 1995, has 32 employees and as of 30 June 2015 had total assets of €1.9 billion ($2.06 billion), according to a statement from Banque Havilland in August last year.

The move comes as part of a series of acquisitions carried out by the bank in recent years. In November 2013, October 2014, and November 2014, the bank acquired either majority or full shares in Banque Pasche's subsidiaries in Monaco, Liechtenstein, and Bahamas respectively.  

The expansions increase the bank’s access to the strategic growth markets of Latin America, the Middle East, and Europe.

Banque Havilland was established in 2009 by the Rowland family and has offices in Luxembourg, London, Monaco, Liechtenstein, the Bahamas, Moscow and Dubai. It employs 170 people across these seven locations.