M and A
LGT Expands Austrian Business
The acquisition from UBS will make LGT one of the top wealth management forces in Austria, the firm said yesterday.
Liechtenstein-based LGT,
has agreed with UBS to buy
the Swiss lender’s Austrian wealth management business, which has
around €4 billion ($4.9 billion) in assets under management, as
well as about 60 staff.
The deal is expected to close in the first three months of 2021.
The financial terms of the transaction weren’t disclosed in
yesterday’s statement from LGT.
LGT’s acquisition comes in a busy week for European wealth
management mergers. Yesterday, France-based
Rothschild & Co agreed to buy Switzerland’s Banque Pâris
Bertrand.
The client relationships of UBS Europe SE in Austria, which
consist of mainly high net worth and ultra HNW individuals, will
be assumed by LGT as part of the asset deal. UBS intends to focus
on providing asset management services in Austria.
The deal will swell LGT Bank Österreich’s assets under management
from around €8 billion as at mid-2020 to €12 billion, boosting
its Austrian market position.
LGT will take on the UBS staff and integrate them into positions
in Vienna and Salzburg, LGT said.
With the acquisition of the wealth management business of UBS
Europe SE in Austria, LGT is strengthening its position in one of
its key European markets and continuing on its successful growth
path. Over the past several years, LGT has continuously expanded
its private banking business in Austria with a view to offering
high net worth private individuals a broad range of long-term
investment solutions. LGT has been operating in Austria with its
own bank since 2007.
LGT’s co-chief executive Meinhard Platzer remains in overall
charge of LGT Bank Österreich as CEO. Dietmar Baumgartner will
take on the role of chief financial officer with responsibility
for the back-office areas. Wolfgang Eisl, former CEO of UBS in
Austria, will be responsible for the market area of Austria as a
member of the executive board of LGT Bank Österreich.
