By Scott Kanowsky
Investing.com -- Deutsche Bank AG NA O.N. (ETR:DBKGn) has announced that it has completed the sale of its Italian financial promoters network to Zurich Insurance Group AG (SIX:ZURN), as the German lender looks to re-focus its activities in Europe's third-biggest economy.
The sale of the unit, which includes more than €16B in assets under management and 1,085 financial advisors, formally brings a close to a preliminary acquisition agreement first reached in August 2021.
Under the terms of the deal, the partnership between the two institutions in Italy will continue, with Deutsche Bank providing banking products and services to Zurich Bank, and Zurich Italy in turn distributing its insurance offerings through Deutsche Bank branches.
Deutsche Bank did not reveal any of the exact financial details behind the transaction. However, according to a source quoted by Bloomberg News, it stands to register a capital gain of over €300M in its fourth quarter results.
In a statement, Deutsche Bank called the move an "important step" in its aim to transform its operations in Italy, where it says it is investing to become a major bank for entrepreneurs and a premium lender for affluent clients.
Meanwhile, Zurich said it would use the purchase to strengthen its presence in the Italian market, which it described as a "key country" for the group.
"Zurich Bank's new network of financial advisors will contribute substantially to the further development of Zurich's distribution channels, which will now be able to count on two realities of excellence working in synergy: advisors for the financial side and agents for the insurance side," said Giovanni Giuliani, country chief executive officer of Zurich in Italy, in a statement.