The transaction is subject to regulatory approval and the deal is expected to close in the first quarter of next year.

Commerzbank, which has received a bailout by the German government, has been selling off its non-German banking assets as a condition of receiving public aid under European Union rules. As reported yesterday, there is speculation that Royal Bank of Scotland may have to shed assets on similar grounds, as it has received public aid.

“In wealth management, Commerzbank is implementing its strategy by focussing on selected locations,” the Frankfurt-listed bank said in a statement.

Under the terms of the deal, both Kleinwort Benson Channel Islands Holding Limited and Kleinwort Benson Private Bank Limited will be acquired by RHJ International.

As at the end of 2008, both companies had wealth management assets under management totalling £5.4 billion (EUR 5.7 billion) and fiduciary assets under administration totalling £15.7 billion (EUR 16.5 billion).

“From the very outset of this process, the Kleinwort Benson management team sought to identify a parent committed to the private banking and wealth management arena for the longer term, so we were delighted in the potential RHJI saw for further growth in our core businesses in both the UK and the Channel Islands at the earliest stages of our discussions,” Robert Taylor, Kleinwort Benson’s chief executive, said in a statement.

“RHJI has been unequivocal in its desire to stress the long-term commitment it is making to our business and to all of our stakeholders. Our new parent is dedicated to supporting us in our efforts to maintain and to improve our current wealth management, fiduciary and funds administration offering, allowing us to develop our proposition to better meet the needs of our clients, both now and in the future,” he continued.