NATIONWIDE high-street financial entity Banca March has completed its acquisition of BNP Paribas' personal banking portfolio for the previously-announced price of €100 billion.
Founded by Juan March Ordinas in Palma de Mallorca 96 years ago but with branches all over Spain, this is the second major buyout Banca March has made in four years involving the French corporation.
Banca March was originally a family-run business, founded in Mallorca in 1926 (photo: Bancamarch.es)
Back in 2018, Banca March bought the 'Mass Affluent' wing of BNP Paribas' personal banking operations, and this time around, its purchase involves the High Net Worth (HNW) and Very High Net Worth (VHNW) accounts.
Part of BNP Paribas Wealth Management, the portfolios cover a combined total of €3.3bn in assets owned by 750 family groups.
Banca March revealed plans for the acquisition back in February this year, and now says the purchase is complete, with 95% of the portfolios' existing business retained.
This high proportion of clients opting to stay put following the change in ownership is 'evidence of their trust in the business model', including its 'leadership, solvency, responsible advice, solid reputation, quality of service, technology, and quality of professionals'.
A French entity with a significant presence in Spain, BNP Paribas' high-end client base is the part Banca March has just acquired (photo: Bnpparibas.es)
All these features enabled Banca March to obtain the relevant regulatory authorisations to effect the acquisition 'within as little as four months', the Spanish entity explains.
Normally, a transaction of this magnitude would take considerably longer – at least a year or 18 months.
CEO of Banca March, José Luis Acea, says that 'just as was the case in 2018' when the company bought BNP Paribas' Mass Affluent client account, its aim is to give customers the 'confidence' that they will be receiving 'excellent advice', the 'security' of joining a personal banking 'ecosystem' backed by one of the 'most solid' entities in Spain, with 'exceptionally-high solvency' and a business model supported by 'a long-term vision that protects the customer against short-term performance pressures' of their funds.
BNP Paribas Wealth Management CEO Antonio Salgado says the operation has enabled his corporation to 'take another step forward' in its 'specialisation strategy' aimed at 'high net worth asset portfolios' owned by 'customers with global needs'.
TWO of Spain's largest high-street banks are reported to be in merger talks, potentially resulting in the joint entity being the second-biggest in the country in terms of share capital.
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