Hamburg-based Warburg Bank has agreed to acquire a 75.1% stake in the asset management unit of NORD/LB Norddeutsche Landesbank Girozentral, a troubled lender based in Hanover.
Warburg Invest, the capital investment arm of the Warburg Group, and NORD/LB Asset Management will subsequently merge their operations.
NordLB, which has been suffering losses due to huge write-downs on ship loans, will retain the remaining 24.9% stake in the combined entity.
The merged group will have €34bn in assets and offer a range of asset management and servicing solutions.
The firms plan to eventually expand its innovative strategies including liquid alternatives and quantitative approaches.
The deal, whose financial terms were not disclosed, is subject to regulatory approval.
Warburg Bank spokesman for the partners Joachim Olearius said: “Alongside our two core business fields Private Banking and Investment Banking, we want to further strengthen our successful performance in Asset Management and continue our focus on the German market here.
“Our common activities in Northern Germany over generations link us together with NORD/LB, our cultural connection was always high.”