ABN AMRO to acquire German Private Bank HAL for €672m to bolster position in wealth management

ABN AMRO has announced the acquisition of Hauck Aufhäuser Lampe (HAL), a prominent German private bank, from Fosun International for EUR 672 million. This strategic move significantly enhances Bethmann Bank, ABN AMRO’s private banking arm in Germany, positioning it as one of the leading banking service providers for affluent clients and institutions in the region.

Strategic Expansion in the German Market

The acquisition of HAL not only expands ABN AMRO’s footprint in the German private banking sector but also strengthens its capabilities in wealth management, asset management, and entrepreneur & enterprise (E&E) services. With this acquisition, ABN AMRO’s combined Assets under Management in Germany will surge to approximately EUR 70 billion, affirming its top-three status in Europe’s largest private banking market.

Robert Swaak, CEO of ABN AMRO, expressed his enthusiasm about the acquisition: “This is a rare opportunity to add scale to our German activities. We are delighted to have reached this agreement. HAL is a long-standing leader in wealth management and has a very strong fit with ABN AMRO, both culturally and geographically.”

Enhancing Service Offerings and Client Solutions

The integration of HAL’s private banking activities and significant German market presence aligns well with ABN AMRO’s existing operations. HAL is renowned for its specialized services in private equity for high-net-worth clients and has distinguished itself among institutional investors and asset managers with its comprehensive One-Stop-Shop, Depository Solutions, and Asset Servicing offerings. These services will now be extended to all ABN AMRO clients.

Choy van der Hooft-Cheong, Chief Commercial Officer Wealth Management at ABN AMRO, highlighted the benefits of the acquisition: “This acquisition will enable us to expand and improve our current product and services offering to both individual and business clients in the important German private banking market.”

Financial Details and Future Outlook

ABN AMRO will pay EUR 672 million at closing, with adjustments post-closing based on audited financials. The acquisition is expected to contribute around EUR 26 billion in Assets under Management and EUR 2 billion in loans. It is anticipated to be financially beneficial for ABN AMRO, enhancing the bank’s capital allocation and expected to deliver pre-tax run-rate cost synergies of approximately EUR 60 million within three years.

Michael Bentlage, CEO of HAL, commented on the strategic fit: “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.”

Regulatory Approvals and Closing Timeline

The completion of the transaction is subject to customary regulatory approvals and is expected to close in the first quarter of 2025. This acquisition marks a significant milestone in ABN AMRO’s strategy to enhance its non-interest income base and consolidate its leadership in the German market.

This acquisition by ABN AMRO represents a strategic enhancement of its service capabilities and market position in Germany. By integrating HAL’s strengths in asset servicing and investment banking, ABAN AMRO is poised to offer a broader range of services to a more diverse client base, reinforcing its role as a leader in European wealth management. This move is likely to set a trend for future consolidations in the banking sector, especially in high-value markets like Germany.