This Tuesday 27 Feb. morning Landesbank Baden-Württemberg Luxembourg announced the acquisition of its private banking business by DekaBank Luxembourg.

The take over will be effective on 1 January 2011. 40 employees are concerned by the deal. They will move to Deka’s premises in Kirchberg by the beginning of next year.

Both institutions in Luxembourg (DekaBank) and Stuttgart (LBBW) did not wish to communicate on the transaction price and conditions.

Founded in January 1978 Landesbank Baden-Württemberg Luxembourg employs 196 persons and operates in four pillars: Private Banking, Custodian Bank, Asset Management and Credit Investment.

“The three other business lines remain under restructuration”, a press-speaker of LBBW confirmed this morning in a phone interview.

In October 2009, the financial institution based in the German states of Baden-Württemberg, Rhineland-Palatinate and Saxony disclosed a restructuring plan aiming to reduce the group’s total assets by 40 per cent, to cut the costs 700 million euro per year as well as the number of employees approximately 2,500 jobs by 2013.