Morgan Stanley has announced that it will sell its Spanish onshore mass affluent wealth management business, to La Caixa.

Morgan Stanley has announced that it will sell its Spanish onshore mass affluent wealth management business, to La Caixa, Spain's largest savings bank. Terms of the transaction, which is scheduled to close during the second quarter of 2008, were not disclosed but the price is thought to be in the region of €600 million ($886.2 million). Morgan Stanley’s institutional businesses in Spain, including investment banking, capital markets, sales & trading and asset management, are unaffected by the transaction. “This sale is the result of our strategy to focus our international wealth management effort on the ultra high net worth market segment,” said James Gorman, co-President of Morgan Stanley. Michael Armstrong, global head of Private Wealth Management, said: “We believe that there is a significant opportunity to leverage Morgan Stanley’s institutional franchise in these markets and this transaction will enable us to further invest in and grow our international private wealth management business.” Banco Sabadell, BNP Paribas, Banco Bilbao Vizcaya Argentaria SA and Caja Madrid were all at one time reportedly interested in the deal. Morgan Stanley will retain its wealth management business in Spain concentrating on ultra high net worth individuals who have more than $10 million in assets.