Netherlands-based ABN AMRO Bank has signed an agreement with Fosun International to acquire German private bank Hauck Aufhäuser Lampe (HAL) in a deal worth €672m.

HAL’s subsidiaries that offer alternative investment fund manager (AIFM)/Manco and fund administration services will not be included in the acquisition. These entities and HAL have established a co-operation agreement to continue delivering one-stop-shop service offering in the market.

According to ABN AMRO Bank, the acquisition of HAL will enable its Germany-based private banking unit Bethmann Bank to strengthen itself as a major provider of banking services for wealthy private clients, family businesses, and institutional clients in Germany.

The merged entity is poised to oversee assets under management totaling approximately €70bn, establishing it as the third-largest provider of wealth management solutions in Germany.

The deal is also expected to contribute around €26bn in assets under management as well as €2bn in loans for ABN AMRO Bank.

Besides, the transaction will bolster the Dutch bank’s wealth management, asset management and entrepreneur and enterprise (E&E) activities. ABN AMRO will also enter into the asset servicing business to provide custody services particularly for illiquid assets.

HAL CEO Michael Bentlage said: “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.”

HAL’s one stop shop, depository solutions and asset servicing offerings will be available to all clients in the future, said ABN AMRO.

The German lender’s investment banking services will also partner with ABN AMRO Germany to boost the latter’s corporate banking goals in Northwestern Europe.

ABN AMRO CEO Robert Swaak said: “HAL is a long-standing leader in wealth management and has a very strong fit with ABN AMRO, both culturally and geographically.

“We share the desire to deliver the best individual solution to our clients. The proposed acquisition will further strengthen our position and offer employees of the combined group the opportunity to play a driving role in the consolidating German market.”

Subject to relevant regulatory approvals, the deal is expected to be completed in Q1 2025.