ECONOMY

EFG Int’l to pay 1.3 bln Swiss francs for BSI

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Swiss investment bank EFG International said on Monday it would dish out $1.3 billion to take over competitor BSI, owned by Brazil’s BTG Pactual group, to create one of Switzerland’s largest private banks.

EFG, which is controlled by the Greek Latsis family, said in a statement it would pay 1.3 billion Swiss francs (1.2 billion euros) in cash and shares for Banca Svizzera Italiana, or BSI.

Once the deal is concluded, BSI’s parent group Pactual will end up holding 20 percent of EFG, it said, stressing though that the the EFG Group would remain the largest shareholder with more than 35 percent of the stock.

By combining the two banks, EFG will “become one of the largest private banks in Switzerland with approximately 170 billion Swiss francs in assets under management,” it said.

[AFP]