Fosun sells German lender for EUR672m

Reuters

Fosun International (0656) has agreed to sell German lender Hauck & Aufhauser Lampe Privatbank to Dutch bank ABN Amro Bank for EUR672 million (HK$5.7 billion).

The Dutch bank's deal comes as European lenders seek to diversify their revenues by bulking up in areas such as wealth management and private banking.

"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," ABN Amro chief executive Robert Swaak said.

The deal is expected to close in the first quarter of 2025 and will increase ABN Amro's assets under management by EUR26 billion and add EUR2 billion in loans.

Some of HAL's units such as those that provide alternative investment fund management or fund administration services will not be part of the acquisition.

JP Morgan analysts said some investors may have preferred if ABN Amro had used the excess capital to buy back shares - a key driver of the rally in European bank shares this year - than on acquisitions.

Chinese multinational conglomerate Fosun is focusing on two key sectors - biotech and healthcare and entertainment and tourism - after disposing non-core assets to repay its debt over the past few years.