The Hinduja Group's planned $1.9-billion acquisition of Luxembourg-based KBL European Private Bankers (KBL epb) has failed to take off.
The proposed deal was announced in May 2010. Luxembourg regulator CSSF has blocked the deal, according to Belgian company KBC Group NV.
KBL epb is the private banking arm of KBC.
"The CSSF has confirmed that it was stopping its evaluation of the acquisition, after concluding that its decision would have been to object to it. The CSSF reached this decision based on application of the criteria set out in the law governing the financial sector and after consulting with the other competent authorities," KBC said in a press statement.
The Hinduja Group said that it would not comment for this story.
"Of course we are disappointed that it had to end this way," said Jacques Peters, chief executive officer, KBL epb.