EFG International has acquired BSI for a total transaction value of 1.33 billion francs, making it the fifth largest private bank in Switzerland.

The Deal

The deal involves a cash payment of 975 million francs to BTG Pactual, the current owner of BSI, and the issuance of 52.6 million shares in EFG International.

BTG Pactual will retain a 20 percent stake in EFG International and have a representative on the board of directors.

Enhancing Competitiveness

The merger is expected to enhance the competitiveness of both banks in the private banking sector.

The transaction is pending approval and the new entity will have operational hubs in Zurich, Geneva, and Lugano.

Workforce and Market Position

The merger will bring together a workforce of approximately 4,100 employees.

The integration of BSI into EFG International aims to strengthen their market position and contribute positively to the Swiss financial center.

Trends in the Banking Sector

The acquisition of BSI by EFG International reflects broader trends in consolidation and strategic partnerships in the banking sector.

The successful integration of BSI into EFG International could set a precedent for future mergers and acquisitions in the banking sector.