BGL BNP Paribas to acquire ABN Amro Bank Luxembourg
BGL BNP Paribas, the Luxembourg subsidiary of French financial group BNP Paribas, has agreed to acquire ABN Amro Bank (Luxembourg) and its ABN Amro Life arm from their Dutch parent, ABN Amro.
It is understood that BGL BNP Paribas will transfer ABN Amro Life’s activities to Cardif Lux Vie in the aftermath of the transaction, which is subject to regulatory approval, and expected to close by the third quarter of this year.
Pieter Van Mierlo, chief executive officer private banking at ABN Amro, said the sale was coming as the company was “investing in, and further integrating, our activities across our core markets, to realise benefits of scale”.
“The wealth management market is fast changing and consolidating further, as scale becomes more important in order to invest in staff and systems needed to provide optimal services to our clients,” he added.
“In Luxembourg, we do not see possibilities to increase to the scale necessary. We concluded, [therefore, that] the transfer of our wealth management and insurance activities in Luxembourg to BGL BNP Paribas would be in the best interest of our clients.”
Carlo Thill, head of BNP Paribas in Luxembourg and chairman of the management board of BGL BNP Paribas, as well as chairman of the board of directors of Cardif Lux Vie, said that for BNP Paribas, the acquisition would “reinforce the key positions that BNP Paribas in Luxembourg holds in the [country’s] wealth management and in the insurance market”.
He added: “We want to play an active and responsible role in the consolidation process that is currently taking place in this sector.”
At the end of last year, BNP Paribas Wealth Management was looking after assets under management of around €364bn.