- NORD/LB Norddeutsche Landesbank (“NORD/LB”) is a universal bank in Northern Germany. NORD/LB was of the opinion that the depositary bank market in Germany is highly competitive and under increasing margin pressure. The business requires significant infrastructure and the demand towards economies of scale has triggered market consolidation among competitors. As the depositary bank business does not form part of NORD/LB’s core banking activities, the bank was no longer prepared to further invest into this business, and has therefore decided to sell it.
- The business was acquired by Landesbank Baden-Württemberg (“LBBW”), which was with EUR 50bn of depositary bank assets prior to the transaction, one of the top ten players in the market. The acquisition enabled LBBW to increase the total volume of its depository business and to enhance its product offering.
- CFM was engaged by NORD/LB as exclusive M&A advisor to sell the business.