Daiwa to pay $1bn for KBC’s key divisions
DAIWA Capital Markets is to purchase KBC Group’s Global Convertible Bond and Asian Equity Derivative businesses for approximately $1bn (£660m).
Daiwa’s investment banking arm announced plans last November to significantly grow its global markets, and at the same time KBC announced its updated strategy of focusing on its core bancassurance expertise in home markets in Europe.
The sale, expected to be completed in the early fourth quarter this year, will see the businesses come under the maintenance of Daiwa, and report to their global head of derivatives, Dominique Blanchard.
Toshinao Matsushima, global head of markets for Daiwa, said: “The acquisition cements and accelerates our plans to become a major player in the Asian equity derivatives and global convertible bonds space.”
The businesses employ approximately 150 staff across London, New York and Hong Kong.
Over the last two years they have generated an average contribution of two per cent to the underlying net profit of KBC Group.
KBC Bank in the Asia Pacific region will continue to concentrate on corporate banking for core clients with links to Europe, with the deal releasing around $200m in capital for KPC.
“The agreement announced today marks another important step in KBC’s strategy to wind down the structured products business,” said KBC chief executive officer Jan Vanhevel on the Daiwa deal.