Singapore's OCBC to acquire ING Asia private bank for $1.5 billion

Oversea-Chinese Banking Corporation Limited (OCBC) today said it has reached an agreement with Dutch banking group ING Bank NV to acquire its Asian private banking business, comprising Singapore-based ING Asia Private Bank Limited and its affiliated entities (IAPB), for $1,463 million (approximately S$2,048 million) in cash.

The acquisition amount includes IAPB's estimated surplus capital of approximately $550 million. The purchase will be funded by OCBC's existing resources, an OCBC release said.

"The acquisition of IAPB marks a transformational step in OCBC's private banking business and will more than triple the Bank's private client assets under management to $23 billion, creating a leading Asian private bank," the bank said in a release.

OCBC, Singapore's third-biggest bank, clinched the surprise deal to buy the Dutch banking group's private banking unit in Asia beating global banking group HSBC, which was rumoured to have made a bid of about $1.63 billion ING's private banking businesses in Asia last month. (See: HSBC scouts for ING's Asian assets: report)

OCBC will be well placed to capture the opportunities provided by the rapid growth of Asia's wealth management industry and Singapore's unique position as a major private banking hub, attracting wealth from both within and outside Asia, the release noted.

"The acquisition is also in line with the Bank's strategic goal of becoming a leading player in wealth management, as articulated in its New Horizons II Strategy.  It will significantly strengthen the bank's position in serving the wealth management needs of its mass, mass affluent and high net worth customers," the releases said.