Paul de Leusse, CEO of Indosuez Wealth Management, stressed in a statement the similarity of cultures and values of both firms. The acquisition “would strengthen [Indosuez’s] geographical footprint”, he added.
The transaction is expected to be finalised by the end of the year, according to a statement from the firm, subject to regulatory approvals and an employee consultation process in France.
The statement added that the negative effect of the acquisition on the parent company’s fully loaded common equity tier 1 ratio will be less than 2 basis points.
Indosuez Wealth Management had EUR110bn ($120bn) of assets under management on 31 December 2016, according to the firm’s statement. Headquartered in Geneva, it has three offices in Asia: in Hong Kong, Singapore and the French territory of New Caledonia, with 220 wealth managers.
Credit Industriel et Commercial (CIC) is part of Credit Mutuel Group, also a French bank. It established the Singapore branch in 1984, and in 2003 set up a private banking business in Singapore and Hong Kong. It obtained a banking licence in Hong Kong in 2016.
The announcement follows a number of acquisitions and consolidations within the private banking and wealth management space in Asia. In February, NAB announced the sale of its private wealth business to OCBC. Earlier Rotschild exited its business in Hong Kong, and LGT Group bought ABN Amro’s private banking business in the region.