French banking group Societe Generale has aborted its plan to divest its UK private banking unit Kleinwort Hambros.
Citing people familiar with the issue, Bloomberg said that the move was the result of Societe Generale’s failure to ink an agreement with suitors.
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According to the report, those who previously expressed interest in Kleinwort Hambros eventually lost interest due to its small size.
Some potential buyers were also apprehensive about the overhaul expenses that were likely to come attached with the purchase, the report further noted.
Moreover, some suitors reportedly wanted to acquire only certain portions of the business that ultimately led to the collapse of the plan.
Societe Generale did not offer any official confirmation on the report.
Bloomberg first reported plans of the sale last year, saying that Societe Generale is working alongside Rothschild & Co on the matter.
According to Bloomberg, Swiss private banks Julius Baer and EFG International were in pursuit of Kleinwort Hambros.
At the end of 2018, Kleinwort Hambros managed around £14bn in assets.
Societe Generale has been offloading businesses as part of its plan to simplify operations and trim operations lacking critical size.
In 2019, Societe Generale sold its Belgian private banking arm to ABN Amro.
