Bank of Beirut acquires bank in Luxembourg: news media
BEIRUT: Bank of Beirut has acquired a small bank in Luxembourg as part of an overall strategy to establish a foothold in Europe, according to news media.
Founded in 1920 in Luxembourg, Fortuna provides retail banking activities for individuals. It also specializes in the financing of real estate projects, professional or private. In 2017, it posted a net profit of 479,319 euros ($543,843 dollars).
“This change in shareholder will allow Fortuna Bank, a cooperative company since 1920, to develop its activities anchored in the Greater Region and deploy a range of banking services to foreign clients,’’ Luxembourg Times wrote quoting Bank of Beirut.
Beirut-based magazine Le Commerce du Levant has also confirmed the news. The Daily Star reached out to Bank of Beirut for comment but did not receive a response.
The Luxembourg Times did not disclose how much Bank of Beirut paid for this acquisition.
“Before the acquisition can be completed, the deal, whose value was not disclosed, must receive green light from the European Central Bank, the Luxembourg-based financial regulator the CSSF, as well as the Central Bank of Lebanon,” Luxembourg Times said.
It added that under the agreement, the management of Fortuna Bank, will keep its functions and be responsible for the future development of the bank’s activities.
“The bank’s 26 employees will also maintain their functions and continue to service local and regional customers, the bank confirmed in a statement. Future plans may include additional recruitment to support the ‘’organic growth of local activities,” the newspaper said.
Bank of Beirut, which has subsidiary in Australia, has $18.5 billion of assets and equity of $1.7 billion. –