Landesbank Hessen-Thüringen Girozentrale has agreed to acquire Dexia SA unit Dexia Kommunalbank Deutschland GmbH for €352 million.

The Belgian lender said Dexia Crédit Local SA, acting through its branch in Dublin, will sell its shares in the German business after securing all relevant regulatory approvals.

The transaction, which is expected to close in the second quarter of 2019, will have a nonsignificant impact on Dexia's solvency and will account for a balance sheet reduction of about 15%, according to the Belgian lender. Detailed financial impacts of the transaction will be disclosed upon completion, Dexia added.