ABN AMRO has agreed to acquire German private lender Hauck Aufhäuser Lampe (HAL) from Chinese conglomerate Fosun International for €672m in a move to boost its wealth management business in Germany.

The Dutch firm said that the deal will enable its German private banking arm Bethmann Bank to become one of the major providers of banking services for affluent private clients, family businesses, and institutional clients in Germany.

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

Hauck Aufhäuser Lampe CEO Michael Bentlage said: “With ABN AMRO, we now have a strong European owner and are taking the next significant step in growth. With our activities, we are reaching a scale in which we can clearly expand our range of services for our customers and create even greater added value.”

The subsidiaries of Hauck Aufhäuser Lampe offering alternative investment fund manager (AIFM)/Manco and Fund Administration services will not be included in the acquisition.

Instead, these entities, along with Hauck Aufhäuser Lampe, have entered into a cooperation agreement to maintain their service offering in the market.

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.”

The acquisition of Hauck Aufhäuser Lampe is projected to add approximately €26bn in assets under management and €2bn in loans for ABN AMRO in Germany.

The private banking operations and presence of Hauck Aufhäuser Lampe in Germany is said to align closely with ABN AMRO’s current client base and geographic reach.

The transaction is expected to reinforce the Dutch banking group’s wealth management, asset management, and entrepreneur & enterprise (E&E) divisions. Furthermore, ABN AMRO will venture into asset servicing, providing custody services, particularly for illiquid assets.

The finalisation of the transaction is contingent upon obtaining the necessary regulatory approvals and is anticipated to occur in Q1 2025.