Helaba in the Takeover of WestLB’s Verbundbank Business

June 30, 2012

Cleary Gottlieb advised Helaba in the takeover of the core business unit Verbundbank with total assets of about €40 billion from WestLB.

The transaction was signed on June 30, 2012 and forms part of the split-up of WestLB imposed by the European Commission in a state aid ruling.

The Verbundbank acquired by Helaba comprises, among others, central bank and clearing functions for the local savings banks in North Rhine-Westphalia and Brandenburg, as well as corporate loan portfolios, covered bonds (Pfandbriefe) issued by WestLB, and cash management and depot banking functions for customers of WestLB.

Helaba is a German Landesbank with core regions in Hesse and Thuringia, Germany. With approximately 6,000 employees (prior to this transaction), the Helaba Group is one of the largest German Landesbanken.

WestLB was a German Landesbank based in Dusseldorf, Germany. It was owned by the German state of North Rhine-Westphalia, the local associations of savings banks in North Rine-Westphalia and certain other municipal bodies and entities. WestLB is to be transformed into a service and portfolio management provider operating under the name of Portigon, owned by the State of North Rhine-Westphalia alone. Apart from the Verbundbank acquired by Helaba, all other business units of WestLB are to be transferred to, and wound down through, the Erste Abwicklungsanstalt, a public law entity operating under the umbrella of the Federal Financial Market Stabilisation Authority.