Khaberni - The Chinese investment group «Legend Holdings» has started the procedure to sell «Bank International à Luxembourg» (BIL), the oldest private bank in Luxembourg.
The Chinese group had acquired the bank about a decade ago, and is now proposing to sell it in a deal that could value the bank at around 2.5 billion euros or more.
«Legend Holdings», listed on the Hong Kong Stock Exchange and a major supporter of the «Lenovo» computer group, is working with «Goldman Sachs» to complete the sale, with initial bids expected to be submitted by the end of September.
According to sources familiar with the deal, the bank has already received preliminary interest from European and Middle Eastern institutions, although negotiations are still in their early stages, and some bidders may only be interested in purchasing parts of the bank, with no guarantee yet of completing the deal.
Previous deal
«Legend Holdings» acquired the bank in 2017 from its Qatari owners, in a deal that valued the group at about 1.6 billion euros at the time, and the bank was then owned by «Precision Capital».
«Bank International à Luxembourg» was founded in 1856 and offers services ranging from wealth management to corporate banking services, while the Luxembourg government owns a 10% stake in the bank.
The bank's data showed that the assets under management amounted to about 50 billion euros at the end of 2025, an increase of 7% over the previous year, while the bank recorded a net profit of 210 million euros, an increase of 24%.
«Reuters» reported in March that «Legend Holdings» had enlisted bankers to explore available options regarding the future of the bank.
The sale comes at a time when some Chinese investors have withdrawn from European financial institutions. For instance, «Fosun Group» sold its stake in the Belgian insurance company «Ageas» in 2024, while «Geely» sold its stake in the Danish bank «Saxo» to «J. Safra Sarasin» last year.
«Bank International à Luxembourg» may be attractive to banks looking to expand their activities, especially in wealth management. European banks have seen an increase in M&A activity in recent years, driven by improved profits and strong balance sheets, which has encouraged banks to seek to expand their business.
Italy has led this trend with a wave of domestic deals, while «UniCredit»'s attempt to acquire «Commerzbank» in Germany has been a test of the ability of cross-border deals to overcome political and regulatory hurdles.
Fragmented banking sector
The European banking sector has long been fragmented, with a large number of lenders and a relatively low level of cross-border mergers compared to the United States, partly due to political resistance to foreign acquisitions.
The sale of «Bank International à Luxembourg» will test the appetite of European and Middle Eastern institutions for acquiring European banking assets, especially amid growing interest in expanding business in wealth management and financial services.
