Investment holding company RHJ International has bought private bank Kleinwort Benson for £225 million from Commerzbank.

The Kleinwort Benson brand will be kept, although management are not being tied in as part of the deal. It ends months of wrangling as other banks circled the City institution and the management searched for support for a management buy-out.

Commerzbank had put the UK and Channel Islands-based private bank up for sale as a condition of the financial support it received from the German government.

Commerzbank accepted €10 billion (£8.9 billion) in financial support in January, giving the German government a 25% stake in the business.  

Close Brothers was reported to be in the race to acquire Kleinwort Benson, while a management buy-out was also reported to be one of the options.

Kleinwort Benson chief executive Robert Taylor (pictured), said the new deal would allow the company to grow its business.

‘Our new parent is dedicated to supporting us in our efforts to maintain and to improve our current wealth management, fiduciary and funds administration offering, allowing us to develop our proposition to better meet the needs of our clients, both now and in the future,’ he said.