BSI, the Lugano-based private bank, has acquired Banca Unione di Credito from Fiat, the Italian conglomerate, for a preliminary price of SFr...

BSI, the Lugano-based private bank, has acquired Banca Unione di Credito from Fiat, the Italian conglomerate, for a preliminary price of SFr400 million ($325.2 million). BUC was establishing in 1919 by Credito Italiano – making it one of the oldest banks in the Canton of Ticino – and acquired by the Fiat Group in 1947. Based in Lugano, it has offices in Geneva and Zurich. It manages around SFr4.6 billion in assets and has shareholders’ equity of around SFr281 million. BSI said in a statement that the acquisition was part of its strategy to grow its asset management business and follows the recent acquisition of the Paris-based asset manager, Ifabanque. “BSI will further consolidate its presence in Ticino and Switzerland’s other financial centres, especially Zurich and Geneva,” the bank said in a statement. “The merger will give BSI greater stability and growth potential, as well as greater earnings generation capacity. Its clients will benefit from bigger economies of scale and a wider distribution of fixed costs. As part of the process, the group plans to leverage financial synergies, its expertise and its human resources.” Fiat said the sale was part of its strategy to concentrate on its core businesses – namely building cars.