Kleinwort-RHJI Purchase Of Hamburg Private Bank Gets Green Light

Anna Hallissey

24 February 2014

German financial regulator BaFin has approved Kleinwort Benson Group’s and its parent company RHJ International’s acquisition of BHF-BANK.

The move will help to expand its wealth and asset management presence with the addition of BHF’s private banking, German Mittelstand corporate banking and financial markets.

BaFin had no objections to the proposed acquisition, in which Kleinwort Benson Group will pay €322 million ($441 million) in cash for a 91 per cent stake in for €32 million, paid in RHJI shares to Deutsche Bank at par value.

The acquisition will result in a shake-up of Kleinwort Benson Group’s ownership: RHJI will keep a 65 per cent stake in the firm whilst co-investor on the BHF deal, investment company Fosun Group, will gain the remaining 35 per cent.

Under the various firms’ wings, BHF will now be able to access their scale and latch onto the lucrative wealth management markets in both Germany and the UK.

The move fits nicely into RHJI’s expansion goals. With Kleinwort Benson Group and BHF combined, it can deliver a diversified financial services group, driving growth for its clients and shareholders. Its finalisation is subject to prior conditions before the deal can officially be closed at the end of March.

Frankfurt am Main-headquartered BHF functions out of Abu Dhabi, Geneva, Luxembourg and Zurich, as well as its native Germany. It looks after around €37 billion of clients’ assets.