The pressure on Switzerland's private banks to consolidate isn't letting up. Banca Arner, which has had a stormy recent history, is teaming up with a Genevan rival.
GS Banque in Geneva and Banca Arner of Lugano are merging, the two said in a joint statement on Thursday. The specific details of the tie-up will be disclosed in March; the joined entity will manage roughly $2 billion in assets.
The two, which both have seen mixed fortunes in recent years, hope that they can expand their business in respective target markets by uniting. Both owners will remain tied to the new firm, the banks said.
Genevans to Lead
The Pennone family controls GS, while Arner is held by the Schraemli, Del Bue and Sciorilli Borrelli families. Though the deal is pitched as a merger of equals, signs indicate that the Genevans will take the lead: the new CEO is Grégoire Pennone, who currently runs GS Banque.
Arner, which also operates a branch in Zurich, is seeking a reinvention with the deal. The bank in 2016 discussed a sale to Mexican businessman Alejandro Garcia's IXE Group, which wanted to convert Arner into a trade financing firm. The deal collapsed, leaving Arner in tatters and Garcia suing for damages.
From Hentsch to Geneva Swiss
GS Banque, which stands for Geneva Swiss Bank, has a no less eventful past. The bank was founded four years ago out of Banque Bénédict Hentsch & Cie in Geneva, after founder Bénédict Hentsch (the former managing partner of Darier Hentsch, which merged with Lombard Odier in 2002) decided to retire and sell a majority stake to deputy Robert Pennone.
The bank pitched itself as an entrepreneur's bank, and even entered fintech (GS is a partner bank for crypto start-up Alprocks, for example). But ultimately neither GS nor Arner could buck the pressure to consolidate in Switzerland's wealth management industry.
Last year saw eight transactions between Swiss and Liechtenstein wealth managers. Millenium Associates exclusively advised Arner.
