Indosuez Wealth to buy Crédit Industriel et Commercial's private banking operations in Singapore, HK
INDOSUEZ Wealth Management announced on Thursday that it reached an agreement with Crédit Industriel et Commercial (CIC) to buy the latter's private banking operations in Singapore and Hong Kong.
The parties had entered into exclusive negotiations since June 16, 2017. The price of the proposed deal was not given.
The transaction is expected to be finalised by the end of the year, and is subject to both regulatory approvals and to customary employee consultation procedures in France.
As part of the deal, Indosuez Wealth Management in Asia, chaired by Pierre Masclet, will welcome CIC's private banking teams in Singapore and Hong Kong, adding to the staff the group currently employs in Asia. After completion of the transaction, Indosuez will have US$14 billion in assets under management in Asia.
"Indosuez has a long-standing presence in this market, having set up in Hong Kong in 1894 and in Singapore in 1905. The addition of CIC's private banking operations in these markets further cements our commitment for the future in the region." Mr Masclet, Chief Executive Officer of Indosuez Wealth Management Asia, said.
Indosuez said the transaction is fully in line with Cr édit Agricole's Medium Term Plan "Strategic Ambition 2020", which included targeted add-on acquisitions in wealth management. It will have a very limited impact on Crédit Agricole S.A.'s and Crédit Agricole Group's Common Equity Tier 1 ratio, of less than 2 basis points.
Crédit Agricole rebranded its private banking arm as Indosuez Wealth Management last year.
Indosuez noted that Asia is the fastest growing region in the world for wealth management, with an expected 10 per cent annual growth in the coming years. In 5 years, Asia's weight in global private banking assets under management worldwide will be above Europe's and probably constitute the largest pool of wealth globally.
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