Loyens & Loeff Luxembourg announces that on 20 May 2010 its client the Hinduja Group signed a binding agreement to acquire KBL European Private Bankers in a deal worth EUR 1.350 billion. The sale consists of KBC’s entire interest in KBL, including all private banking subsidiaries and KBL’s custody and life insurance activities. The Corporate and M&A Department of Loyens & Loeff Luxembourg advised the purchaser on the acquisition as a whole, with a particular focus on all relevant aspects of Luxembourg law.

Kredietbank Luxembourg (KBL) operates a network of affiliated local banking and financial companies, which provide mainly private and investment banking products and services in 55 locations in 10 European countries.  At the end of 2009, KBL’s assets under management totalled EUR 47 billion. The diversified multinational Hinduja Group has been involved in banking for nearly a century, and is already active in the European banking sector through Hinduja Bank Switzerland.  The acquisition will give Hinduja a greater presence in Europe.  Hinduja also plans to expand KBL by using its business interests in over 100 countries, particularly in the Middle East, India and Asia.  However, KBL’s headquarters will be maintained in Luxembourg.

This is the second billion euro transaction in the last six months that Loyens & Loeff Luxembourg’s Corporate and M&A Department, led by partner Thierry Lohest, has steered to a successful conclusion for a foreign buyer of a major Luxembourg company, after the acquisition of Skype by Silver Lake.