Frankfurt - Deutsche Bank announced Wednesday it is completely buying out Sal. Oppenheim, Europe's largest private bank, for one billion euros (1.5 billion dollars).

Germany's largest bank made the announcement after concluding the framework agreement for the takeover of Sal. Oppenheim, which was founded in Bonn in 1789. The transaction is to be completed in the first quarter of 2010.

Deutsche Bank, which is to report its third-quarter business results on Thursday, said that Sal. Oppenheim's asset management operations would be continued under the renowned trademark name.

"With the transaction Deutsche Bank is strengthening its position in the upper segment of private customer banking, especially in Germany," Deutsche Bank said.

The announcement was the latest development in a deal which had long been brewing after it had become known that Luxembourg-based Sal. Oppenheim had fallen into trouble amid the economic crisis and a series of investments gone bad.

Initially the talk was of a possible "strategic partnership" as reports emerged about Deutsche Bank's interest in Sal. Oppenheim last summer.

Sal. Oppenheim's assets management portfolio has reached 160 billion euros, with the bank emerging as Europe's largest private bank after its acquisition of BHF Bank in 2004.

But Sal. Oppenheim's fortunes turned downward amid the world financial crisis and some investments gone wrong. In 2008, the bank reported a 117 million euro loss, its first ever since the end of World War II.

In particular, Sal. Oppenheim's 30 per cent buy-in at the German retail and travel concern Arcandor came in for criticism, taking place at a time when Arcandor was financially stricken. Last June, Arcandor filed for bankruptcy.

For Deutsche Bank, the acquisition of Sal. Oppenheim continues an aggressive expansionist course in private banking business, after acquiring Berliner Bank, Norisbank and Postbank. (dpa)