On Monday, March 10th, Switzerland’s long-established private bank J. Safra Sarasin announced the acquisition of a 70% stake in Saxo Bank, replacing Geely Financials Denmark A/S from China as the largest shareholder.
According to Reuters, under the transaction agreement, J. Safra Sarasin will acquire Geely Financials’ 49.9% stake and Mandatum Group’s 19.8% stake in Saxo Bank, with a total transaction value of approximately 1.1 billion euros, bringing Saxo Bank’s overall valuation to 1.6 billion euros. After the completion of the deal, Saxo Bank’s founder and CEO, Kim Fournais, will retain a 28% stake and continue to lead the company.
Founded in 1841, J. Safra Sarasin manages assets totaling around 226 billion euros, focusing on global wealth and asset management. This acquisition will help the bank further expand its international business and integrate Saxo Bank’s digital trading and investment platform to strengthen its private banking and asset management services.
Kim Fournais stated, “This transaction is a strategic milestone for Saxo Bank’s growth and innovation, and will further solidify our position as a leader in the global digital trading arena.” The deal is subject to regulatory approval and is expected to be completed by the end of 2025.
Geely first invested in Saxo Bank in 2017 through its subsidiary Geely International Hong Kong, acquiring a 25.71% stake, which was later increased to 52% the following year, making it a majority shareholder. This move was seen as an important opportunity for Saxo Bank to enter the Chinese market and gave Geely a competitive edge in financial technology, utilizing cloud services, big data, and artificial intelligence in trading and asset management.
However, due to stricter regulatory environment in China, escalating tensions between China and the U.S., slowing economic growth in China, and increasing geopolitical uncertainties, Geely decided to divest this investment. Geely Financials Denmark A/S stated in a release that, “The sale of Saxo Bank aligns with Geely Holding Group’s latest long-term strategic plan, focusing on the core automotive business.”
Amidst this transaction, Saxo Bank is experiencing its best performance in history. In January 2024, the bank implemented a new pricing strategy, further lowering trading costs and significantly increasing user engagement. According to the 2024 annual report, the company achieved record highs in customer numbers and profits:
– Total revenue: 4.67 billion Danish krone (approximately 630 million euros), a 4% increase from 2023.
– Net profit: 1.005 billion Danish krone (approximately 136 million euros), a significant increase from 260 million Danish krone in 2023.
– Total customer assets: 853 billion Danish krone (approximately 114.5 billion euros), a 14% increase from 2023.
– Active customer base: 1.286 million people, an 11% increase from 1.159 million in 2023.
With J. Safra Sarasin’s acquisition of Saxo Bank, the European private banking market is experiencing a new wave of mergers and acquisitions. In recent years, European regulatory authorities have increased scrutiny on Chinese capital in the financial sector, particularly focusing on national security, economic reliance, and financial transparency, making the investment environment for Chinese companies in the European market more challenging.