Dutch bank ABN AMRO on Tuesday said it has reached an agreement to acquire leading German private bank Hauck Aufhäuser Lampe (HAL).
ABN AMRO has agreed to purchase Frankfurt-based HAL from Chinese multinational Fosun International for €672 million ($731 million), the Dutch banking giant said in a press release.
The transaction is expected to be completed in the first quarter of 2025.
The Amsterdam-based company already owns Bethmann Bank, a leading German private equity firm. The statement said: "The combination of HAL and Bethmann Bank will create a leading private bank in Germany."
Bethmann Bank managed assets of around €44 billion euros last year. With the acquisition of HAL, ABN AMRO's German asset management is set to grow to around €70 billion.
The combined financial institution is set to be the third-largest asset manager for wealthy clients in Germany.
ABN AMRO chief executive Robert Swaak said: "The proposed acquisition will further strengthen our position and offer employees of the combined group the opportunity to play a driving role in the consolidating German market."
The Luxembourgish and Irish subsidiaries of HAL in the asset servicing sector are not part of the deal and will remain with Fosun.
The history of Hauck Aufhäuser Lampe dates back to 1796. The conglomerate Fosun, founded by billionaire Guo Guangchang, acquired the bank in 2015. After numerous acquisitions, Fosun is currently reducing its debt by selling assets.