Fosun on a Private Bank Buying Spree

Published By : 07 Sep 2015 | Published By : QYRESEARCH

The biggest private-owned conglomerate in China, Fosun International Ltd. is focusing on acquiring private banks across the globe. The conglomerate, which previously acquired Club Med, a French resort operator, has a budget of US$1 billion to US$1.5 billion for each of the international financial acquisitions.

In the beginning, the firm had started as a Chinese drugs distributor around 20 years ago. In 2010, it went on a purchasing spree and has acquired various financial firms and insurers, expensive real estate and several brands like Silver Cross and Cirque du Soleil, spending a sum of US$8 billion, according to Dealogic.

As of now, the giant conglomerate is in the process of procuring a Hauck & Aufhauser, a Germany-based private bank. The firm awaits the regulatory approval. It has invested a whopping US$233 million to acquire the German bank. An attempt to obtain half of the total share of the Belgium-based BHF Kleinwort Benson Group has also been made by the firm.

The chief executive of Fosun, Mr. Liang Xinjun, stated in an interview that the conglomerate is looking forward to own more assets and aims at catering to rich and wealthy Chinese in Japan and all over Europe. The group owns a small stake in BHF Kleinwort Benson at present.

Mr. Liang also said that Fosun has kept a budget of US$1 billion to US$1.5 billion aside for each of the financial companies, it plans to buy in the years to come. Apart from the cash and the loans from banks, Fosun is using the premiums obtained from the billions of dollars of its recently acquired insurance firms as an economical and enduring investment capital

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