Germany's biggest lender Deutsche Bank has struck a deal to buy Sal. Oppenheim, a Luxembourg-based private banking group, for 1.0 billion euros (1.5 billion dollars), Deutsche Bank said on Wednesday. "With this transaction, Deutsche Bank strengthens its position among high-net-worth private clients, especially in Germany," a statement said.
"Sal. Oppenheim's Asset and Wealth Management activities will be maintained and expanded in the future under the private bank's established brand and preserve Sal. Oppenheim's identity, values, culture and service quality." The transaction nonetheless marks the end of Sal Oppenheim's independence. The bank was founded in 1789 and billed itself as the largest independent private bank in Europe, but its finances have deteriorated sharply.
"In the future Sal. Oppenheim will focus on their core asset and wealth management business," the statement said. Current shareholders in the bank will have the option of taking a long-term holding of up to 20 percent in the German subsidiary Sal. Oppenheim jr. & Cie. KGaA based in Cologne, the statement said. Deutsche Bank also planned to buy activities owned by Oppenheim for an additional 300 million euros.
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