Societe Generale has agreed to sell its private banking business in Belgium, to ABN AMRO Bank for an undisclosed price.
As per the terms of the deal, ABN AMRO will acquire all the activities carried out by Societe Generale Private Banking Belgium (SGPB Belgium) along with its client portfolios and employees.
ABN AMRO Bank said that it will consolidate its market position in Belgium and its position in the Eurozone as a leading private bank through the merger of its existing private banking activities in the country with those of Societe Generale.
The Dutch bank also said that the acquisition will help its Assets under Management in Belgium to nearly double to €12bn.
ABN AMRO Private Banking CEO Pieter van Mierlo said: “This acquisition fits perfectly with our strategy to solidify our position in Private Banking in North-West Europe. It will enable us to serve our clients better and to grow our activities further.”
For Societe Generale, the sale of SGPB Belgium aligns with its 2016-2020 “Transform to Grow” strategic plan.
The main objectives of the plan are to focus and develop the company’s footprint in markets where it can become a top-tier bank, with a critical size and the potential for creating synergies with other group businesses.
Societe Generale said that its private banking business will focus on its development by consolidating its position in its important markets and core franchises through its activities in France, the UK, Switzerland, Luxembourg and Monaco. It will also look to form new partnerships with international banking networks in those markets.
The transaction, which will be subject to approval by the relevant regulatory and merger control authorities, is expected to close in Q1 2019.
Earlier this month, Societe Generale signed a deal to acquire the equity markets and commodities business (EMC) of Germany-based Commerzbank for an undisclosed price.
The French banking and financial services company said that the deal is part of its strategy to extend its global banking and investor solutions activities further.