Indosuez Wealth Management has entered into exclusive talks with Credit Industriel et Commercial to acquire its private banking activities in Singapore and Hong Kong, the bank said in a release.
The French private bank is looking to accelerate growth in key markets in Asia.
It has been actively recruiting in 2017 and has announced six senior RM hires. It currently has 220 employees in its offices in Singapore and Hong Kong.
Both firms are headquartered in France, and the combination of the businesses would 'bring together two players with similar cultures and values,' said Paul de Leusse, CEO of Indosuez WM.
The announcement follows months of rumours, with many industry participants expecting VP Bank to buy the units. The industry has been undergoing consolidation in the past year, with EFG's acquisition of BSI in February 2016 kicking off a series of similar announcements.
The transaction is expected to be finalised by year-end, and is subject to customary employee consultation procedures in France and regulatory approvals.
It is likely to have a negative effect of less than 2 basis points on the CET1 ratio of the Credit Agricole group.
Pierre Masclet, CEO of Indosuez Wealth Management Asia, commented: 'This important step would be a new chapter for Indosuez’s Asia presence and demonstrates our clear commitment and ambition to accelerate our development in the region.'