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DBS Bank completes USD220m purchase of SGPB Asia.


6 October 2014 - Singapore's DBS Bank Ltd, a unit of DBS Group Holdings Ltd (SGX:D05), said today it had wrapped up its USD220m (EUR175.5m) deal for Societe Generale SA's (EPA:GLE) private banking units in Singapore and Hong Kong and some of its trust activities.

The deal for Societe Generale Private Banking Asia (SGPB Asia) was announced in March, when DBS said it would cover the purchase price with internal cash resources. The buyer also stated at the time it did not expect the transaction to affect its earnings or net asset value per share.

DBS anticipates the acquisition to generate substantial revenue and cost synergies. With this move, the Singaporean company effectively boosts its high-net worth assets under management by over 20%, stepping up its plan to convert into Asia's top wealth manager, according to the current press release.

The two banks have also agreed that clients of the French lender will be able to access DBS Private Bank's offerings in the region, while DBS will take advantage of Societe Generale's offerings in Europe and obtain access to a wide range of corporate and investment banking solutions created by the French group.

The majority of SGPB Asia employees, management and relationship management teams will be transferred to DBS. SGPB Asia's former regional chief executive Olivier Gougeon will join DBS as head of the transformation, integration and ultra-high net worth division.

Country: Hong Kong, Singapore

Sector: Banking/Financial Services

Target: Certain trust operations, Societe Generale Private Banking Asia

Buyer: DBS Bank Ltd

Vendor: Societe Generale SA

Deal size in USD: 220m

Type: Corporate acquisition

Financing: Existing resources, Cash

Status: Closed

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Publication:M & A Navigator
Geographic Code:90ASI
Date:Oct 6, 2014
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