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Safra buys Sarasin majority stake

Rabobank has agreed to sell its majority stake in private Swiss bank Sarasin to the global Safra Group for SFr1.04 billion ($1.13 billion), it was announced on Friday evening.

The deal thus fended off an approach from rival bank Julius Bär and ended months of uncertainty.

In a statement, Sarasin said the Safra Group agreed to acquire a majority shareholding in Bank Sarasin at a price of SFr7.20 per A registered share and SFr36 Swiss francs per B registered share, to be paid in cash.  The deal values Sarasin at a total of SFr2.26 billion, according to Reuters.

The agreement puts an end to months of speculation that Rabobank was looking to sell its stake in Sarasin.

Sarasin, a bank for rich clients, has assets under management of some SFr100 billion, offering a rare chance of making a substantial jump in Switzerland’s fragmented private banking market. 

Sarasin has a significant private banking presence in key European markets, the Middle East and Asia while Safra is strong in the Americas and Europe. 

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