KBS announced yesterday that: “Given that the sale of Antwerp Diamond Bank (ADB) to Yinren Group could not be successfully  completed, KBC has decided, in implementation of the agreement made with the European Commission, to run down the loan portfolio and activities of ADB in a gradual and orderly manner. “

The decision came after continuous efforts since 2009, which included discussions with over 100 potential investors, did not yield the desired result of finding a suitable investor for the bank.  KBC had announced at the end of last year that an agreement had been reached on the acquisition of the ADB by the Chinese Yinren Group. However, the contender failed to submit the required paperwork to the Belgian regulator, the National Bank of Belgium within the agreed time frame and despite having been given extensions for the same. 

For the moment what the decision means is that “No new loans will be granted at ADB and no new business developed”. 

Over the next few months ADB plans to “contact its clients personally to work out the practicalities with them”.

Johan Thijs, CEO of KBC Group NV explaining the decision said: “We regret that a strong brand and a leading player in the diamond banking industry, with a long and rich history, will have to cease operations ...”

Pierre De Bosscher, CEO of Antwerp Diamond Bank concluded: “Its specific niche business made the divestment of Antwerp Diamond Bank less than straightforward, despite the long track record of this renowned institution. It is, of course, unfortunate that no opportunities had emerged in the past few years to develop the business further with a new shareholder. However, I'm convinced that the current approach under the arrangements agreed between KBC and Europe takes full account of the interests of our clients, staff, shareholders and all other stakeholders.”