7 Shocking Deals that shake-up Private Banking in Asia
Since the global financial crisis of 2008, banks had gone through many mergers, acquisitions, split-ups and some went into oblivion.
We look at 7 deals that had shake-up Private Banking in Asia since 2008.
No. 1 Bank of America acquire Merrill Lynch in 2008
In 2008, Bank of America acquired global financial giant Merrill Lynch. The deal was concluded at $50 Billion and almost $2.5 Trillions AUM (Assets Under Management) were gained by Bank of America. Bank of America took over all of Merrill Lynch business operations including wealth management, capital markets, advisory and shareholdings of BlackRock Inc.
+ AUM $2.5 Trillion
Source: Bank of America Press Release 2008
Deal Facts
- Acquirer: Bank of America
- Acquired: Merrill Lynch
- New Entity: Bank of America Merrill Lynch
- Deal Size: $50 Billion
- AUM Acquired: $2.5 Trillion
- Assets Involved: All of Merrill Lynch businesses including wealth management, capital markets, advisory and shareholdings of BlackRock Inc
Source: Bank of America acquired Merrill Lynch to form Bank of America Merrill Lynch
No. 2 OCBC Bank acquire ING Private Banking in 2009
In 2009, OCBC Bank acquired ING Asia Private Banking. The deal was concluded at a cost of $1.46 Billion with OCBC Bank gaining $16 Billion AUM. OCBC Private Bank and ING Asia Private Banking will merged to form the entity – Bank of Singapore.
+ AUM $16 Billion
Deal Facts
- Acquirer: OCBC Bank
- Acquired: ING Private Banking
- New Entity: Bank of Singapore
- Deal Size: $1.46 Billion
- AUM Acquired: $16 Billion
- Assets Involved: Asia Private Banking
Source: OCBC Bank acquire ING Private Bank to form Bank of Singapore in 2009
No. 3 Julius Baer acquire Macquarie Private Bank in 2011
In 2011, Julius Baer acquired Macquarie Private Banking operations in Asia (Singapore & Hong Kong). The deal was completed at a nominal cost. Julius Baer gained $1 Billion AUM from the purchase of Macquarie Private Bank in Asia.
+ AUM $1 Billion
Deal Facts
- Acquirer: Julius Baer
- Acquired: Macquarie Private Bank
- New Entity: Julius Baer
- Deal Size: Nominal
- AUM Acquired: $1 Billion
- Assets Involved: Asia Private Banking (Singapore & Hong Kong)
Source: Julius Baer acquire Macquarie Private Bank in 2011
No. 4 DBS Bank acquire Societe Generale Private Banking in 2014
In 2014, DBS Bank acquired Societe Generale Private Banking operations in Singapore, Hong Kong and part of it’s trust businesses. The deal was concluded at a cost of $220 million with DBS Bank gaining $12.6 Billion AUM (Assets Under Management). Majority of Societe Generale’s 330 staffs will be joining DBS under the brand DBS Private Banking.
+ AUM $12.6 Billion
Deal Facts
- Acquirer: DBS Bank
- Acquired: Societe Generale Private Banking
- New Entity: DBS Private Bank
- Deal Size: $220 Million
- AUM Acquired: $12.6 Billion
- Assets Involved: Singapore & Hong Kong Private Banking, and selected parts of trust business unit
Source: DBS to buy Societe Generale’s Private Banking business
No. 5 Union Bancaire Privee acquire Coutts International in 2015
In 2015, Union Bancaire Privee (UBP) acquired Royal Bank’s of Scotland’s Private Bank – Coutts International. The deal was completed at an undisclosed price (Industry estimates $600 – $800 million). UBP will gained $31 Billion in AUM. The acquisition includes all of Coutts International except UK operations.
+ AUM $31 Billion
Deal Facts
- Acquirer: Union Bancaire Privee
- Acquired: Coutts International
- New Entity: Union Bancaire Privee
- Deal Size: Estimated $600 – $800 Million (Undisclosed)
- AUM Acquired: $31 Billion
- Assets Involved: All of Coutts International except UK
Source: Union Bancaire Privee acquire Coutts International in 2015
No. 6 Bank of Singapore acquire Barclays Asia in 2016
In 2016, Bank of Singapore acquired Barclays Private Banking in Asia. The deal is estimated at $320 Million with Bank of Singapore acquiring $18 Billion AUM . Bank of Singapore Private Bank is a subsidiary of OCBC Group.
+ AUM $18 BILLION
Deal Facts
- Acquirer: Bank of Singapore
- Acquired: Barclays
- New Entity: Bank of Singapore (part of OCBC Group)
- Deal Size: Estimated $320 Million
- AUM Acquired: $18 Billion
- Assets Involved: Barclays Private Banking Asia (Singapore & Hong Kong)
Source: Bank of Singapore buys Barclays Private Banking Asia in 2016
No. 7 EFG International acquire BSI Singapore in 2016
In 2016, EFG International acquired BSI Bank from Brazilian financial group BTG Pactual. The deal announced with a price acquisition of $1.33 Billion swiss franc. With the acquisition, EFG International will have a combined assets of $170 Billion. The transaction involves BTG Pactual holding about 20% share in EFG International.
+ AUM $76 BILLION
Deal Facts
- Acquirer: EFG International
- Acquired: BSI
- New Entity: EFG International
- Deal Size: Estimated $1.33 Billion SG
- AUM Acquired: $76 Billion
- Assets Involved: BSI Bank
Source: EFG International buys BSI from Brazil’s BTG Pactual
One more deal we missed out. And we are very thankful a kind Private Banker from Pictet Private Bank notified us of this. Edited 5th June 2016.
No. 8 Julius Baer Completed Acquisition of Merrill Lynch Non-United States International Wealth Business in 2015
In 2012, Julius Baer launched an acquisition of Merrill Lynch’s International Wealth Business outside United States. The deal involved CHF 52 – 72 Billion of assets with an acquisition price tag of CHF 860 Billion. The acquisition was completed in 2015.
+ AUM 57 BILLION
Deal Facts
- Acquirer: Julius Baer
- Acquired: Merrill Lynch
- New Entity: Julius Baer
- Deal Size: Estimated CHF 860 Billion
- AUM Acquired: CHF 52 – 72 Billion (Lower End)
- Assets Involved: International Wealth Management, except United States
Source: Julius Baer buys Merrill Lynch International Wealth Management Business, Julius Baer
Credits: Wall Street Journal, Bloomberg, Reuters, Straits Times
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- 12 Reasons why most clients do not give Private Banker AUM within 6 months
- How do Private Bankers acquire new clients?
- 12 Top Career Options for Private Bankers
- 5 Shocking deals that shake-up Private Banking in Asia
Useful Articles:
- List of Regional Private Banks in Singapore
- List of International Private Banks in Singapore
- List of Boutique Private Banks in Singapore
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