Source: CHANNEL NEWSASIA
SINGAPORE: Oversea-Chinese Banking Corp (OCBC) has acquired the wealth and investment management business of Barclays Bank in Singapore and Hong Kong for US$320 million (S$430 million) in cash.
The acquisition was done through its private banking arm Bank of Singapore, OCBC said in a filing to the Singapore Stock Exchange on Thursday morning (Apr 7).
The purchase price is indicative, based on the assets under management of Barclays' wealth and investment management business in the two locations of US$18.3 billion.
Bank of Singapore will use its own cash to fund the acquisition, OCBC said, adding that the acquisition will see its subsidiary's assets under management rise by 33.3 per cent to US$73.3 billion.
The transaction is expected to be completed by end-2016, and is subject to approval of Singapore's High Court for the transfer of the Singapore business.
“We see attractive value in Barclays’ strong and complementary private banking client base in Singapore and Hong Kong, as well as in its experienced and service-oriented wealth management team,” said OCBC Group CEO Samuel Tsien.
Reuters reported in February that other than OCBC, Singapore's DBS Group and Swiss bank Julius Baer had also submitted non-binding bids for Barclays' Asian private wealth business.
The sale is part of a restructuring drive under Barclays new Chief Executive Jes Staley and comes as several European banks rethink their Asian strategy due to pressure at home to cut costs.
Barclays managed US$36 billion in private banking assets in Asia as of last year, according to a survey by industry publication Private Banker International that ranked it 14th by managed assets in Asia.
SINGAPORE: Oversea-Chinese Banking Corp (OCBC) has acquired the wealth and investment management business of Barclays Bank in Singapore and Hong Kong for US$320 million (S$430 million) in cash.
The acquisition was done through its private banking arm Bank of Singapore, OCBC said in a filing to the Singapore Stock Exchange on Thursday morning (Apr 7).
The purchase price is indicative, based on the assets under management of Barclays' wealth and investment management business in the two locations of US$18.3 billion.
Bank of Singapore will use its own cash to fund the acquisition, OCBC said, adding that the acquisition will see its subsidiary's assets under management rise by 33.3 per cent to US$73.3 billion.
The transaction is expected to be completed by end-2016, and is subject to approval of Singapore's High Court for the transfer of the Singapore business.
“We see attractive value in Barclays’ strong and complementary private banking client base in Singapore and Hong Kong, as well as in its experienced and service-oriented wealth management team,” said OCBC Group CEO Samuel Tsien.
Reuters reported in February that other than OCBC, Singapore's DBS Group and Swiss bank Julius Baer had also submitted non-binding bids for Barclays' Asian private wealth business.
The sale is part of a restructuring drive under Barclays new Chief Executive Jes Staley and comes as several European banks rethink their Asian strategy due to pressure at home to cut costs.
Barclays managed US$36 billion in private banking assets in Asia as of last year, according to a survey by industry publication Private Banker International that ranked it 14th by managed assets in Asia.
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