(Reuters) -Commerzbank said on Thursday it had bought a majority stake in renewable energy-focused asset manager Aquila Capital as it seeks to tap into demand for sustainable investing and boost commission-related income.
The German bank said it was buying 74.9% of Aquila, with the remaining 25.1% stake staying with the parent company of Aquila. The deal is expected to be closed in the second quarter of this year, it added.
Expanding into asset management has proven popular with bank executives keen to diversify their incomes and grow fee-related revenue that can be more stable than other earnings.
Commerzbank (ETR:CBKG) did not disclose the financial details of the transaction but said it expected the acquisition to make a "significant contribution" to its planned growth in commission income.
"With the transaction, we are significantly increasing the range of products in sustainable asset management for our customers and will expand our market position even faster," Commerzbank Private and Small-Business Customers board member Thomas Schaufler said in a statement.
Hamburg-based Aquila Capital employs around 200 people and focuses on renewable energy assets. Together with Commerzbank's Commerz Real unit, the real asset portfolio of the combined group will grow to more than 40 billion euros ($43.54 billion).
($1 = 0.9187 euros)