The Hinduja group is looking to acquire KBL European Private Bankers, being sold by Belgium’s KBC.
The group has made a bid of over $2 billion for the bank, which has 47 billion euros ($65.2) in assets under management. Bids have also been made by Brazilian banking group Safra, Italy’s Exor, private equity firm KKR and Swiss bank Julius Baer.
The Hinduja group officials were not available for comment. However, an investment banker familiar with the development confirmed the group’s interest in buying the asset. Paris-based newspaper La Tribune also reported on Monday that the Hinduja group and other bidders had made bids of over $2 billion. The sale was being managed by global investment bank JPMorgan, the newspaper said.
KBC is the second-largest bancassurer in Belgium. It is also one of the largest banks in Europe and a major financial player in central and eastern Europe, serving 11 million customers worldwide.
The Belgian government and the Flemish regional government pumped 7 billion euros ($10 billion) in KBC in November.
The company, in return, pledged a sharp scaling down of its merchant banking business, sale of private banking and a string of divestments, while keeping its core bancassurer model intact.
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Several major banks, including Credit Agricole, Societe Generale, Barclays and Banco Santander, dropped out of the bidding process, said the La Tribune report.
The Hinduja group has diversified business interests, including banking. It operates Hinduja Bank from Switzerland, with branches in London, Paris, Dubai, Mauritius and New York.
It is also into retail banking in India under the brand name IndusInd Bank. The group is also into commercial vehicles, foundries, lubricants and hospital care.