Bellevue Group has agreed to sell its banking unit to a Luxembourg-based wealth manager. The news confirms a finews.com report from eight weeks ago.

Bellevue Group has agreed with Luxembourg-based rival KBL European Private Bankers to sell its Bank am Bellevue, according to a statement released by the company on Monday.

In June, Bellevue had confirmed that it intended to divest the banking unit and that it was in talks with a potential buyer after finews.com had reported that KBL was interested in the Swiss business.

Transaction to Be Completed in 2020

KBL will assume the business with its current 22 members of staff and assets under management totaling 1.7 billion Swiss francs ($1.73 billion). The companies didn’t reveal how much it will pay for the bank. It expects to complete the transaction in the first quarter of 2020, pending regulatory approval.

The sale of the business won’t affect Bellevue’s asset management and private market divisions, which will continue to operate as usual. The proceeds from the divestment will be channeled into the company’s remaining operations and the two firms are planning a cooperation in asset management.

Swiss Expansion Bid

The Luxembourg bankers are back in Switzerland, having waved goodbye to the Alpine country in 2015. KBL wants to grow quickly under its new Swiss manager, Juerg Zeltner. It aims to poach relationship managers from other banks in Switzerland and further acquisitions may follow.

In Switzerland, the bank entrusted ex-Credit Suisse manager Dagmar Kamber Borens with the expansion of its operations.