Degussa Bank up for sale with 2021 deal expected
Frankfurt-based Degussa Bank is up for sale as its owners struggle to pay heavy fines leveraged on another lender.
Reuters reports that the owners of Degussa Bank, Christian Olearius and Max Warburg, are making good on a promise to financially support MM Warburg.
The Hamburg bank has been ordered to pay €176 million for its role in a fraud trial labelled one of the country’s worst since the Second World War.
Olearius and Warburg have said they plan to financially support MM Warburg in any related payments.
Degussa, founded in 1873, has assets of around €6 billion. According to Reuters the bank could be valued at around €400 million.
PwC is sending information to prospective buyers at the start of August, and a deal is expected before the end of the year.
Systems at play
Degussa signed a multi-year contract with EquensWorldline back in March 2017. The bank outsources its SEPA processing, cross-border payments, high value payments, compliances services, and more.
The bank also signed a deal with Frankfurt-based start-up Giromatch. The two firms teamed up to launch a project offering a virtual Visa credit card for shopping with Amazon Business.