ZURICH, Oct 5 (Reuters) – Intesa Sanpaolo has agreed to buy a 69% stake in Switzerland’s REYL & Cie, the two businesses explained on Monday, in a offer that will merge the Italian bank’s Swiss personal banking business enterprise with its Geneva-dependent rival.
Intesa, which has a company design geared toward charges from asset management and insurance coverage, is carrying out the acquisition by way of Fideuram, its personal banking division.
“The partnership … confirms the selection of Switzerland as the headquarters of the international non-public banking routines of Fideuram … and provides sizeable scale to its existing existence in the nation,” the companies’ joint statement explained.
The offer will deliver together REYL and Banque Morval, which Intesa purchased in 2019. The merged team will have 400 employees and belongings less than administration of more than 18 billion Swiss francs ($20 billion).
The deal “will help Fideuram … to fortify its global personal banking actions, specially in promising progress areas and to continue participating in a primary job in the ongoing consolidation of the Swiss financial sector,” the corporations mentioned.
Intesa this yr kicked off a new wave of European banking consolidation by snapping up scaled-down rival UBI in a 4 billion euro paper-and-cash offer to develop the euro zone’s eighth-largest banking group.
Societe Generale analysts stated in a note previous week the UBI deal had beefed up Intesa’s prosperity management company but additional growth would be fascinating. Global enlargement in prosperity administration could counter domestic in excess of-publicity, they stated.
The phrases of the Swiss deal, which is expected to be finished in the 1st 50 % of 2021 pending regulatory acceptance, were not disclosed. ($1 = .9147 Swiss francs) (Reporting by Brenna Hughes Neghaiwi in Zurich and Valentina Za in Milan Editing by Michael Shields and Jane Merriman)