Bank of Beirut ac­quires bank in Lux­em­bourg: news me­dia

The Daily Star (Lebanon) - - BUSINESS -

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. –

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