The Fiat Group, through IHF - Internazionale Holding Fiat, and BSI SA, a Generali Group company, have today reached an agreement under which BSI will purchase 100% of the capital stock of Banca Unione di Credito (BUC) of Lugano. The value of the transaction, subject to the results of due diligence, is approximately 400 million Swiss francs, or about 260 million euros. The agreement will require approval by regulatory and antitrust authorities.

Banca Unione di Credito was founded in 1919 by Credito Italiano. It is registered as a banking institution under Swiss law and has been a Fiat Group company since 1947. Sole shareholder of the Bank is IHF Internazionale Holding Fiat SA of Lugano, a Swiss holding company 100% owned by Fiat S.p.A. BUC is Headquartered in Lugano and has branches in Zurich and Geneva. The presence of the BUC extends also internationally, with a Representative Office in Argentina and through its 100% owned subsidiary Banca Unione di Credito (Cayman) Ltd, Grand Cayman, active in the areas of Private Banking and Money Markets. Among others, a significant investment (26%) has been made in Lombard Bank Plc, Valletta, the third Bank in Malta. It manages assets worth 4.6 billion Swiss francs and its stockholders’ equity is equal to 281 million Swiss francs (data as of December 31, 2005).
 

This transaction is consistent with the Fiat Group’s strategy of focusing on its core automotive business through the sale of non strategic assets. The sale of Banca Unione di Credito to the oldest bank of the Ticino Canton provides a guarantee that the process of renewal undertaken and the development of BUC will continue. This transaction is part of BSI’s plan to increase its presence in the asset management business on the basis of the mission it was assigned by the Generali Group. This acquisition also confirms the expansion policy of the BSI Group, under which it recently acquired the Paris-based bank Ifabanque.

Thanks to this transaction, total assets of the new Institution will exceed 60 billion Swiss francs. This transaction will enable BSI to consolidate its presence in the Ticino Canton and in the main financial centres of Switzerland, in particular Zurich and Geneva, thereby strengthening its position in its key market. As a result of this acquisition the bank’s stability, its growth opportunities and value-generation potential will further increase. Its customers will in turn benefit from the advantages deriving from significant economies of scale and the synergies obtained from greater skills and professionalism of its human resources.