UniCredit-owned HypoVereinsbank (HVB) is to sell its custody business in Germany to CACEIS. Exclusive negotiations began yesterday in Munich. The sale is to be concluded by the end of 2007, subject to proper regulatory approvals.
UniCredit has made clear for some time that the German custody business – as opposed to the former Bank Austria Creditanstalt sub-custody network in central and eastern Europe – is not central to its ambition.
In a statement, HVB says the planned sale is “another major step towards tangible and sustained cost savings on the operational front. At the same time, the sale would allow HVB to continue to focus on its core competencies.”
CACEIS says it plans to grow by acquisition in a “focused” way, and Germany is one of the major European markets for custody and clearing activities.
“After the sale, HVB customers will continue to receive securities services in the accustomed quality and scope,” says a spokesman for CACEIS. “They will, in addition, benefit from the size and product breadth of CACEIS.”
The German operations of CACEIS will continue to be based in Munich. CACEIS says it intends to rely on the existing HVB staff.