The Chinese company announced that they have agreed to buy a 90% stake in Banque Internationale à Luxembourg from Qatar-owned Precision Capital.
The announcement was made on Friday, in which Legend Holdings, the Chinese owner of computer manufacturer Lenovo Group, said that they will be acquiring a 90 percent stake in Banque Internationale à Luxembourg from Precision Capital for 1.48 billion euros, or about $1.75 billion.
The acquisition marks the largest takeover of a European bank by a Chinese company. Legend Holdings first rose to the spotlight in 2005, when they purchased IBM’s personal computers business.
Precision Capital acquired a majority stake in Banque Internationale à Luxembourg, as well as KBL European Private Bankers, in 2012. At the time, KBL European Private Bankers claimed 41 billion euros in assets under management and 39 billion euros in assets under custody.
Precision Capital bought their share in BIL from Belgium’s Dexia for 750 million euros half a decade ago, meaning that, through this deal, they more than doubled the money they initially invested into BIL.
Established in 2006, Precision Capital is a Luxembourg-based incorporated holding company owned by the Royal Family of Qatar and is managed by the former Prime Minister of Qatar Sheikh Hamad bin Jassim bin Jaber Al Thani.
The state of Luxembourg will retain a 10% stake in the bank, which has 23 billion euros in assets. Both sides have said that the management of the bank will remain in place.