The Dutch Rabobank-Group, of the Netherlands, and Bank Sarasin & Co, the Swiss private bank have agreed to form a strategic alliance to promote the further development of their international private banking activities. As part of this partnership Rabobank is integrating its international private banking units in Switzerland, Luxembourg, Guernsey and Asia (Hong Kong and Singapore) into the Sarasin Group as a non-cash contribution. In its own name and under its corporate responsibility, Bank Sarasin & Co. is thereby also taking over the management of the worldwide Private Banking avtivities of the Rabobank Group.
In return, Rabobank is acquiring a 28 percent stake in Sarasin’s equity capital. Bank Sarasin & Co is being converted from a limited partnership with shares (Kommandit-AG) into a pure joint-stock company. To facilitate Rabobank’s participation, Sarasin is carrying out a capital increase by issuing new B shares without subscription rights for existing B shareholders. In addition, Rabobank is acquiring a call option on 100 percent of Eichbaum Holding AG, the entity through which Sarasin’s partners hold their ownership interests in the bank. This option runs over a period of seven years.
For Sarasin, this strategic alliance with a first-class, heavily capitalized partner represents a further step in the internationalization of its core competencies; the alliance also helps to secure Sarasin’s future in an increasingly hard-fought competitive environment.
For Rabobank, the capital-backed partnership with a traditional Swiss private bank, will allow it to build private banking into a high-growth strategic business area and thus into a further pillar of success within its range of services. On a consolidated basis, the new Sarasin Group has assets under management of CHF 56 billion (EUR 37.4 billion).
The integration of Rabobank’s private banking units into the Sarasin Group will facilitate a substantial strengthening of international client servicing capabilities. Furthermore, after taking restructuring costs into account, it will generate savings equivalent to 15 percent of pro forma annual profit which will impact on the bottom line from 2003.