New Delhi, May 21 (IANS) Diversified international conglomerate Hinduja group will buy Luxembourg-based banking and insurance company KBC’s private banking arm for Euro 1.35 billion ($1.69 billion), both parties informed in a statement Friday.
The subsidiary, KBL European Private Bankers, is one of Europe’s largest onshore private banking groups with local affiliate banks in 55 locations across 10 European countries and had assets under management worth Euro 47 billion.
The Hinduja’s banking business consists of the IndusInd Bank in India and the Hinduja Bank Switzerland.
‘The Hinduja group intends to grow KBL internationally by using the group’s business interests in more than 100 countries,’ said the joint statement.
KBL was put on the block due to a financial crisis in the parent group which has to return about Euro 7 billion state aid.
‘We plan to invest further in the business, maintaining each of the subsidiaries, while also providing KBL with access to the fast growing markets of the Middle East, the Indian subcontinent and Asia,’ said chairman of the Hinduja group, Srichand P. Hinduja.
KBL will continue to be headquartered in Luxembourg and the current management team will be retained.