KBC Group, a Belgian bank, is selling its private-banking division for €1.05 billion, The Wall Street Journal reports. The division, KBL European Private Bankers, will be bought by Qatar-backed Luxembourg firm Precision Capital.
The deal is a part of a restructuring agreement signed with the European Commission in return for €7 billion of state aid that the lender got to help it cope with the global financial crisis, adds Reuters. Previously, parties interested in this unit included the Hinduja Group, Kohlberg Kravis Roberts & Co., Societe Generale and Royal Bank of Canada. KBC is also seeking to sell its majority stake in Poland’s Kredyt Bank and insurer Warta Insurance and Reinsurance Co.
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