The Hinduja Group, the diversified conglomerate run by the Hinduja family, announced this morning it will buy the private banking subsidiary of the KBC Group, KBL European private bankers, for €1.35 billion.
The Hinduja Group said it plans to grow KBL internationally, giving it greater access to the growing markets in the Middle East, India and Asia. Second-generation chairman Srichand Hinduja said: "We are very pleased to welcome KBL epb into our business, which has a long and successful history in the banking sector. We intend to ensure that KBL epb clients continue to receive exemplary service from a highly-motivated staff working in a new and secure environment.
"In this way, we hope to address the private banking needs of clients internationally and facilitate capital flows between fast growing economies and established Western financial markets," he concluded.
The announcement brings to an end the speculation over who would succeed in acquiring KBL, with other bidders including Exor, the private investment arm of Italy's Agnelli family.
The Hinduja Group was founded in 1914 by Parmanand Deepchand Hinduja and is now controlled by four second-generation brothers including chairman Srichand. The Hinduja Group, headquartered in Europe although founded in India, has interests in banking through its Hinduja Bank Switzerland and Induslnd Bank in India, which has a balance sheet of $8 billion.
KBL is one of Europe's largest onshore private banking groups with affiliated local banks in 55 locations across 10 European countries. At the end of 2009 KBL had assets under management of €47 billion.
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