ABN Amro is set to take over German lender Hauck Aufhäuser Lampe for EUR 672 million in cash from Chinese conglomerate Fosun.

The acquisition will strengthen ABN Amro's presence in private banking in Germany and position it as one of the largest providers of banking services to high net worth private clients, family businesses and institutional clients in the country. The combined assets under management (AuM) will amount to approximately EUR 70 billion and the transaction is expected to be completed in the first quarter of next year.

Founded in 1796, Hauck & Aufhäuser is one of Germany's oldest banks. Fosun bought it in 2016 and later merged it with Bankhaus Lampe. Fosun has recently been divesting assets in the European financial services sector to reduce its debt burden. Earlier this year the firm sold a 9% stake in Belgian insurer Ageas to BNP Paribas for €730 million.