Daiwa to acquire KBC's convertible bond, Asian derivatives businesses

By Marisa Wong

Madison, Wis., July 6 - KBC Group NV has agreed to sell its global convertible bond and Asian equity derivatives businesses to Daiwa Capital Markets for a total consideration of approximately $1 billion, according to a news release.

Toshinao Matsushima, global head of markets at Daiwa, and Jan Vanhevel, chief executive officer of KBC, said the acquisition will help grow Daiwa's derivatives business and free up capital resources for KBC.

Of the $1 billion consideration, $200 million will be for staff, IT infrastructure and other assets and $800 million will be for the trading position.

The sold businesses and operations will be maintained in their entirety by Daiwa and will report to Daiwa's global head of derivatives, Dominique Blanchard.

In the Asia Pacific region, KBC will continue to concentrate on corporate banking, including lending, trade finance and treasury sales for core clients with links to KBC's home markets in Europe.

The closing of the transaction is subject to regulatory approval and is expected to be completed by the early part of the fourth quarter of 2010.

Daiwa is the investment banking arm of Tokyo-based Daiwa Securities Group.

Based in Brussels, KBC Group is a bancassurance company and the parent of KBC Bank.

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