Belgian banking group KBC has decided to wind down its subsidiary Antwerp Diamond Bank (ADB) after failing to complete its sale to China’s Yinren Group.
KBC said it would carry out the process in an orderly manner, with respect for Diamond clients and the contractual arrangements already in place.
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While ADB will be absorbed into KBC, new loans will not be granted and new business will not be developed at ADB.
As a result, outstanding loans will initially continue to be managed by ADB and then in a later phase by KBC.
KBC had agreed to sell ADB to the Chinese Yinren Group at the end of last year. However the deal collapsed as the Chinese group failed to submit a comprehensive file to the Belgian regulator, the National Bank of Belgium, within the agreed timeframe.
The run-down is the last of a series of divestments and business closures made by KBC since 2009, initiated to meet EU Commission’s demand for securing state aid.
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