Swiss private banking group Julius Baer has completed the purchase of Commerzbank International S.A. Luxembourg, the firm has announced.
Under the deal, which was first announced in December of last year, the private bank will be renamed Bank Julius Baer Luxembourg S.A and will improve flexibility of the group's European businesses.
The purchase was finalised on July 4 and, at the time of the acquisition, Commerzbank International S.A. Luxembourg (CISAL) had €2.5 billion of assets under management and around 150 employees.
Following the completion of the deal, Falk Fischer, who was CEO of the Luxembourg-based firm, will carry on as the head of the new division of the Swiss banking group.
As a result of acquisition CISAL's banking platform, Temenos T24, will also move over to Julius Baer. This will aid the banking group in its worldwide platform renewal program. Meanwhile a new booking center will provide flexibility for servicing European clients.
The Luxembourg arm of Comemrzbank was acquired for €78 million, which was paid in cash.
Commenting on the acquisition, Fischer said: 'Thanks to the group’s position as the leading Swiss private bank with a global reach and the great cooperation with the colleagues of the existing local franchise in Luxembourg, I am convinced that our clients will benefit from the unique investment knowledge, exceptional client focus and the enhanced offering the combined businesses will be able to provide'
A spokesperson for Bank Julius Baer added the purchase of CISAL represented the addition of a 'high quality' franchise, which would allow the group to expand its international footprint. It also marks the latest part of the bank's European expansion push, which increased its stake in Milan-based Kairos Investment Partners to 80% in April.