Deutsche Bank will keep and restructure BHF, a wealth management unit it had hoped to sell, after talks collapsed with prospective buyer Liechtenstein-based bank LGT.
The two lenders had drawn up a ready-to-sign agreement on the sale but decided not to pursue the transaction following discussions between the parties and with supervisory authorities, Deutsche Bank said today.
According to a source close to the sales process, German watchdog Bafin's preconditions for the sale proved unworkable for LGT.
LGT and Bafin were not immediately available for comment. "The termination of the selling process is clearly disappointing," DZ Bank analyst Sabine Bohn said.
Germany's biggest lender had been on the lookout for a potential buyer ever since it inherited BHF through the €1 billion purchase of Sal Oppenheim in March 2010.
Deutsche Bank entered into exclusive talks with LGT in December. At the time, sources said that what remains of BHF's proprietary trading activities would be closed after LGT's sale and that other parts of BHF would likely stay with Deutsche Bank, in particular the corporate credit business.
Credit rating agency Standard & Poor's in January placed LGT on a negative outlook, saying risks in a takeover of BHF might outweigh the strategic fit of some parts of the business.
Reuters