FRANKFURT (AFX) - WestLB AG said it has reached an agreement with Bankgesellschaft Berlin AG to purchase its private bank Weberbank Privatbankiers KGaA for an undisclosed sum.
The transaction is expected to close in September.
"The acquisition will strengthen WestLB's position in business with high net worth private clients in Germany," WestLB said.
The agreement is subject to approval by the relevant authorities.
"As a result of the acquisition by WestLB, Weberbank will in future focus on the private banking and institutional client businesses," it said, adding that the corporate client business will be transferred to Landesbank Berlin.
"At the same time the acquisition underscores the new strategic direction of WestLB as an integrated, customer-oriented wholesale and retail bank, working in conjunction with the savings banks," said chief executive of WestLB Thomas Fischer.
Founded in 1949, Weberbank is one of Germany's oldest-established private banks.
The businesses acquired by WestLB account for roughly 3 bln eur in assets under management, and more than 33,000 clients, including many high net worth individuals, foundations and non-profit organisations.
WestLB will retain all employees of Weberbank.
Media reports have previously suggested WestLB would have to pay less than 100 mln eur in cash for the acquisition.
ragnhild.kjetland@afxnews.com
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The copying, republication or redistribution of AFX News content, including by framing or similar means, is expressly prohibited without the prior written consent of AFX News.
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The transaction is expected to close in September.
"The acquisition will strengthen WestLB's position in business with high net worth private clients in Germany," WestLB said.
The agreement is subject to approval by the relevant authorities.
"As a result of the acquisition by WestLB, Weberbank will in future focus on the private banking and institutional client businesses," it said, adding that the corporate client business will be transferred to Landesbank Berlin.
"At the same time the acquisition underscores the new strategic direction of WestLB as an integrated, customer-oriented wholesale and retail bank, working in conjunction with the savings banks," said chief executive of WestLB Thomas Fischer.
Founded in 1949, Weberbank is one of Germany's oldest-established private banks.
The businesses acquired by WestLB account for roughly 3 bln eur in assets under management, and more than 33,000 clients, including many high net worth individuals, foundations and non-profit organisations.
WestLB will retain all employees of Weberbank.
Media reports have previously suggested WestLB would have to pay less than 100 mln eur in cash for the acquisition.
ragnhild.kjetland@afxnews.com
rkj/nes
COPYRIGHT
Copyright AFX News Limited 2005. All rights reserved.
The copying, republication or redistribution of AFX News content, including by framing or similar means, is expressly prohibited without the prior written consent of AFX News.
AFX News and the AFX Financial News logo are registered trademarks of AFX News Limited
For more information and to contact AFX: www.afxnews.com and www.afxpress.com
© 2005 AFX News
