December 23, 2009 / 8:20 AM / 9 years ago

UPDATE 2-Macquarie buys Sal. Oppenheim derivatives business

* Deal set to close in Q2 2010

* Business worth two-digit mln euros - source

* More than 90 staff to switch to Macquarie

* Marks divestment of businesses Deutsche Bank doesn’t want

(Adds quotes and background)

FRANKFURT, Dec 23 (Reuters) - Australia’s Macquarie (MQG.AX) will acquire the derivatives business of private bank Sal. Oppenheim, helping it boost its presence in Europe and diversify away from its Asian base.

Neither company gave financial terms on Wednesday, but one source close to the matter said the deal valued the business, which focuses on equity derivatives and structured products, in the double-digit million euro range.

Deutsche Bank (DBKGn.DE) is set to buy most of Sal. Oppenheim for 1 billion euros ($1.43 billion) by the first quarter of 2010 but wants to shed businesses that are not part of the core wealth management operations.

Sal. Oppenheim’s derivates business is a market maker and issuer on exchanges in Germany, Switzerland, Austria and Italy. It markets equity derivatives via private banks and retail brokers.

The deal is set to close by early in the second quarter of next year, with more than 90 staff in Germany and Switzerland switching to Macquarie.

Sal. Oppenheim is a blue-blooded brand that has been serving the ultra-rich since 1789. Last year it posted its first loss since World War Two, hit by ill-fated investments in companies such as now-insolvent retailer Arcandor AROG.DE.

That drove it into the arms of Deutsche Bank in a deal that will double Deutsche’s client assets under management to around 300 billion euros and reduce its dependence on volatile income from investment banking. [ID:nLS148134]

Sal. Oppenheim said it and its new owner were examining options for the rest of the investment banking operations, which sources said Macquarie had reviewed but then decided not to buy.

“Deutsche Bank has indicated that it will fully support a continuation of the investment bank,” a Sal. Oppenheim statement said.

“The continuation concept also includes assessing alternatives for transferring the remaining investment banking activities into a new ownership structure,” it added.

Reporting by Philipp Halstrick, writing by Michael Shields; editing by John Stonestreet

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