Deutsche Bank AG said Wednesday it has reached a deal to buy private bank Sal. Oppenheim for ⁈ion ($1.5 billion).
The Frankfurt-based bank, Germany's biggest, said it had signed a framework agreement with the owners of Sal. Oppenheim jr. & Cie. SCA to acquire 100 percent of the group and that current Sal. Oppenheim shareholders would have the option getting a long-term stake in its German subsidiary, Sal. Oppenheim KGaA.
In buying the Luxembourg-based wealth management group, Deutsche Bank will also acquire the Germany subsidiary; BHF-BANK AG; and the private equity fund of the funds business managed in the separate holding of Sal. Oppenheim Private Equity Partners SA.
Deutsche Bank will also acquire BHF Asset Servicing GmbH, which Deutsche Bank intends to sell. Deutsche Bank will also participate in talks on the sale of Oppenheim's investment banking activities.
Deutsche Bank said it expects the transaction to close in the first quarter of 2010, subject to regulatory approvals. Deutsche said it could pay for the transaction in shares.
"Through the acquisition of this respected private banking house we will strengthen our asset and wealth management in Europe and especially in Germany," Chief Executive Josef Ackermann said in a statement.
"This is an excellent base for further global growth in this area."
Deutsche Bank also said it has entered into agreements with Oppenheim that could lead to an increase in the purchase price to ⁈llion, based on the future performance of specific options.
The announcement that the two companies were looking at a strategic partnership came in August, when Oppenheim raised ⁈llion in new capital _ an injection financed by Deutsche Bank _ and Deutsche made an offer for a stake in the bank which allowed it to look at Oppenheim's books.
At the end of June, Sal. Oppenheim Group had approximately ⁈llion in client assets under management and employed approximately 4,400 members of staff.
Deutsche Bank, Germany's biggest lender, has assets of ⁈illion and employs nearly 79,000 people.
Deutsche Bank shares were nearly 2 percent lower at ⁈in late Frankfurt trading.
Sal. Oppenheim jr. & Cie, now headquartered in Luxembourg, traces its roots back to 1789 when Salomon Oppenheim Jr. founded a "commission and exchange house" in Bonn, focussing on shipping and trading commodities. It has 4,000 employees at 20 locations worldwide.
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