Societe Generale's agreement to acquire 100% of Kleinwort Benson and Kleinwort Benson Channel Islands Holdings Limited, the UK and Channel Islands' wealth management business of BHF Kleinwort Benson Group, a company recently acquired by Oddo & Cie, will expand the wealth management capabilities of the French bank in the UK private banking market with a new distribution channel for investment products.
Societe Generale has marketed over 600 structured products, and finished 2015 as the third most active provider in the UK retail market. In addition, the French banking group has remained in the top 10 global providers ranking of private banking products since 2013. In 2015, the bank sold over €2.7bn across 524 private banking products.
Subject to regulatory approvals, Kleinwort Benson will be acquired and eventually combined with Societe Generale Private Banking Hambros (SGPB Hambros), the group's private banking business in the UK and Channel Islands, to create one of the leading private banks in the UK market.
The acquisition will bring together two of the most recognised names in private banking, with shared values and a shared heritage in the UK and Channel Islands established through their deep-rooted history here, according to Jean-Francois Mazaud (pictured), head of Societe Generale Private Banking.
"It will enable us to leverage on the expertise and strengths of the teams from each business to better serve our clients through the creation of a distinctive industry leader in wealth management," said Mazaud in a statement. "With the growth of the UK wealth management industry set to continue, the complementary nature of Kleinwort Benson and SGPB Hambros will build on our unique expertise. We will support our clients across all their needs, from banking to domestic and international wealth planning and fiduciary services to investment management, market access, structured products and specialised services."
Established originally as Hambros Bank in 1839 in the UK as a merchant bank financing domestic and international businesses, SGPB Hambros has become a distinguished private banks in the country. Kleinwort Benson, created from a business in 1786 to finance trade in England, offers wealth management services to private clients for over 200 years with a relationship-driven proposition.
In addition to offer private banking and wealth management solutions to high net worth individuals, including executives, entrepreneurs and inherited wealth, Kleinwort Benson has also established its presence as financial advisor to a number of major UK infrastructure projects.
Grégoire Charbit, partner at Oddo & Cie said the deal is consistent with the firm's strategy to focus on the Franco-German market. The French bank said the acquisition reflects its growth ambitions in private banking in its core markets of Europe, the Middle East and Africa (Emea), and is aligned with its strategic objective to be a relationship-focused private bank of reference.
"This transaction would have no significant financial impact on the Societe Generale group," said a Societe General spokesperson who could not provide any details what kind of structured products will be offered to Kleinwort Benson's clients "as this is still subject to regulatory approvals". "Once [the deal is] closed we will be in a position to give more detail," said the SG spokesperson.
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