The proposed acquisition is part of Deutsche Bank's strategy to further strengthen its position in the European market and to enlarge its unique pan-European asset gathering and distribution platform serving private and corporate clients. The relevant busi-nesses of Banque Worms would enable Deutsche Bank to strengthen its private customer base, thereby accelerating the role-out of the innovative multichannel offering of Deutsche Bank SA. Moreover, Deutsche Bank's assets under management held for retail and institutional clients in France would more than triple as a consequence. "With the acquisition of Banque Worms's core businesses, Deutsche Bank could accelerate its expansion in the French market and offer services to private and corporate clients from a much broader platform," explains Jacques-Henri David, President Directeur General of Deutsche Bank in France.
The businesses to be acquired by Deutsche Bank include a network of 17 branches throughout France and serve approximately 15,000 private clients and more than 2,000 corporate clients. Assets under management held by the involved entities total up to Euro 7.5 billion. The reorganisation process that Banque Worms Group is currently undergoing was originally initiated by AXA and would be continued in those businesses to be acquired by Deutsche Bank. At the end of 1999 Banque Worms Group reported total assets of Euro 6 billion with 1,200 employees. After a negative result of Euro 1.7 million after tax for 1999, the bank realized a net profit of Euro 0.5 million for the first half of 2000.
Deutsche Bank has successfully built a strong investment banking platform in France, run through its branch in Paris. Being nominated for the second year in a row as the best foreign bank in France, Deutsche Bank performs strongly across a full range of investment banking businesses. By creating Deutsche Bank SA, Paris, at the end of 1999, Deutsche Bank initiated a greenfield approach targeting private clients, the so called "money class". Today, Deutsche Bank SA, Paris, offers its services through a modern multi-channel approach combining online-banking with a remote service center and 11 financial centers for personal financial planning and advice. It will be part of Deutsche Bank's pan-European personal banking platform Deutsche Bank 24. Deutsche Bank is also extending its corporate business for medium and large sized companies. In the asset management business in France, Deutsche Bank has a good platform for further growth, having received awards for superior performance for its mutual funds. As per end of August 2000 it had almost Euro 2 billion assets under management.