EFG International and BSI Merge to Form Private-Banking Giant

EFG International and BSI have decided to join forces and build a major Swiss private bank. BSI's owner, BTG Pactual, will remain a shareholder.

EFG International will pay 975 million Swiss francs and 52.6 million own shares to BTG Pactual for BSI, the company said in a statement today. Taken together, the total paid amounts to 1.328 billion francs.

EFG and BSI together will become a major Swiss private bank with 170 billion francs in assets under management (as of December 31, 2015) and aim to achieve an important market position in the global wealth management business.

Synergies of 185 Million Francs

Both brands will continue to be used and in most markets a combined brand will be introduced. Zurich, Geneva and Lugano remain the offices from where the group is being directed and operated.

The two companies aim to save 185 million francs before taxes through synergies by 2019 and the combination is thought to contribute to the new company's earnings per share starting in 2018.

BTG Pactual Takes EFG International Stake

BTG Pactual will take a stake of about 20 percent in EFG International, with EFG Group remaining the largest shareholder with 35 percent.

Pending the approval of shareholders and regulators, the banks expect the transaction to be concluded in the fourth quarter of 2016.