ABN AMRO expands business in Germany with acquisition of Hauck Aufhäuser Lampe
- ABN AMRO Bank N.V. has today signed an agreement with Fosun International Group to acquire Hauck Aufhäuser Lampe (HAL)
- Dutch bank significantly expands its German business in Wealth Management, Asset Management and Corporate Banking – Germany becomes ABN AMRO's second largest market
- Together with HAL, Bethmann Bank strengthens its position as the third largest provider of wealth management for high net worth individuals in the German market with a total of around EUR 70 billion in assets under management
- Combination of the two institutions creates a larger platform with an expanded range of services; complemented by HAL's asset servicing business
- Setting the course for further growth combined with the ambition to become a leading bank for family businesses (Mittelstandsbank)
Frankfurt am Main / Amsterdam, 28. May 2024 - ABN AMRO Bank N.V. (“ABN AMRO”) today announced that it has entered into an agreement with Fosun International Group (“Fosun”) to acquire Hauck Aufhäuser Lampe Privatbank AG (HAL), a leading German private bank. With the acquisition of the longestablished HAL, the Dutch bank continues its Northwest Europe strategy and in particular its growth in the German market. The acquisition makes Germany the second largest market for the Dutch banking group.
“ABN AMRO is a leading bank in Northwest Europe. The acquisition of Hauck Aufhäuser Lampe in the German market, that is of central importance to us, supports our growth ambitions and demonstrates our long-term interest in strategically expanding our market position in this important region,” says Robert Swaak, CEO of ABN AMRO Bank N.V.
The combination of HAL's German business with Bethmann Bank (“Bethmann Bank”), the wealth management business of ABN AMRO Bank N.V. Frankfurt Branch (“ABN AMRO Germany”), will create a new heavyweight in the German market, the largest private banking market in Europe. The combined entity will be the clear number 3 in wealth management in Germany with total assets under management of around EUR 70 billion. Bethmann Bank had around EUR 44 billion in 2023.
At the same time, the acquisition of HAL will make ABN AMRO one of the leading providers of banking services in Germany for family businesses and German SMEs. The services for institutional clients will also be expanded, in particular through the Asset Servicing division of Hauck Aufhäuser Lampe, which offers institutional investors services relating to the administration of investment products through the custody of financial assets, real assets and digital assets.
“In future, clients of both banks will have a broader range of services that optimally meet the needs and requirements of wealthy individuals, families, institutional investors as well as entrepreneurs and their companies, because the range of services of ABN AMRO Germany and Hauck Aufhäuser Lampe complement each other very well,” says Hans Hanegraaf, CEO Bethmann Bank and Country Executive ABN AMRO Deutschland.
“Both institutions already pursue an ‘Entrepreneur & Enterprise’ approach and are therefore an excellent cultural fit. In addition, Bethmann Bank and ABN AMRO have proven in the past that they can successfully integrate acquisitions in wealth management and lead to joint success. Together with Hauck Aufhäuser Lampe, we are clearly on course for further growth and have the ambition to shape the future of banking in Germany”, Hanegraaf continued.
The acquisition opens up a wide range of opportunities for employees of both banks. Both banks offer the professional yet familiar atmosphere of a German private bank, combined with the international network of ABN AMRO.
“I would like to pay tribute to our talented teams, whose efforts have greatly supported the fantastic development of the bank in the last 10 years. The proposed combination with ABN AMRO Germany will strengthen further the position in the market and gives the combined bank more opportunities for growth through even broader products and services to our clients”, commented Michael Bentlage, CEO of Hauck Aufhäuser Lampe Privatbank AG.
The combination of HAL with Bethmann Bank will unite the private banking traditions of many well-known banks under one roof: HAL is the result of the merger of the banks Hauck, Aufhäuser and Lampe. Bethmann Bank itself is the result of the merger of Delbrück, Bethmann and Maffei. It has also taken over the German businesses of LGT and Credit Suisse and successfully integrated them into the bank in recent years.
HAL, whose history dates back to 1796, focuses on sophisticated advisory services, manages the assets of private and corporate clients, offers asset management for institutional investors and comprehensive fund services in selected countries. In addition, HAL is active in research and sales & trading activities for small and mid-cap companies in German-speaking countries as well as IPO and capital services for these clients. HAL also offers digital asset management under the name Zeedin, which expands access to young customer groups in the entry-level segment of investment advice.
Not included in the acquisition are the Luxembourg and Irish subsidiaries of Asset Servicing: Hauck & Aufhäuser Fund Services and its subsidiaries Hauck & Aufhäuser Administration Services and HAL Fund Services Ireland. Fosun will retain ownership of the companies, which fit very well into its asset-light model approach and have clear synergies with its activities in the insurance sector in Europe. Fosun aims to further develop the Alternative Investment Fund Management/Management Companies (AIFM/ManCo) and fund administration functions and to grow internationally in the future. The focus will continue to be on a one-stop store model, including a depositary, across all companies in the future. To this end, a cooperation agreement has been concluded with ABN AMRO.
Financial details of the transaction
ABN AMRO and the current shareholders have agreed on the sale of 100 % of the outstanding shares for a total purchase price of EUR 672 million (subject to adjustments). The overall impact of the acquisition on ABN AMRO’s CET1 ratio is approximately 45 bps based on Q1 2024 results and following carve-out of the fund administration business.
HAL manages around EUR 26 billion in assets (as of 2023). In 2023, HAL achieved a net profit of EUR 83 million with a Tier 1 capital ratio of 19 % at the end of 2023.
Around EUR 60 million of pre-tax run-rate cost synergies are expected to be achieved after a three-year horizon, net of dyssynergies.
The transaction is expected to close in Q1 2025, subject to approval by the relevant regulatory authorities. Until then, ABN AMRO Germany and HAL will remain legally and operationally independent.
About ABN AMRO
ABN AMRO is a Dutch bank for clients in retail, corporate and private banking with a focus on Northwest Europe. We offer our clients comprehensive products and services – including digital products and services – as well as in-depth financial expertise and specialised knowledge in numerous industry sectors. Headquartered in Amsterdam, ABN AMRO serves around 5 million retail customers and employs around 21,000 people worldwide. In Germany, the bank is represented by ABN AMRO Bank N.V. Frankfurt Branch and offers comprehensive wealth management (via the Bethmann Bank brand) and corporate banking services. In addition to its headquarters in Frankfurt am Main, ABN AMRO Bank N.V. Frankfurt Branch has 12 other locations in important economic centres in Germany and employs around 730 people (FTE). ABN AMRO is also present in the areas of leasing, factoring and warehouse financing through its Asset Based Finance N.V. Branch Germany, based in Cologne.
More at www.abnamro.com, www.bethmannbank.de and www.abnamrocomfin.com/deu/de-de/
Contact
Communication and Marketing
Alexandra Vitt-Krauß
T +49 69 2177-1379
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E alexandra.vitt-krauss@bethmannbank.de
Frank Elsner
Frank Elsner Kommunikation für Unternehmen GmbH
T +49 5404 91 92 0
M +49 170 48 15 181
E frank.elsner@elsner-kommmunikation.de