LGT Group, the Liechtenstein-based wealth manager, is to buy Dresdner Bank (Switzerland) from Commerzbank, as the latter continues to spin off non-German assets.

The purchase price has not been disclosed. The deal is being financed entirely in cash.

At the end of 2008, Dresdner Bank (Switzerland) had assets under management of SFr9.4 billion. The combined Swiss subsidiary of LGT Group will manage client assets totalling almost SFr20 billion.

“With this acquisition, LGT Group will significantly strengthen its market position both in Switzerland and in important growth markets,” LGT, headquartered in Vaduz, said in a statement.

Pending approval by the relevant authorities, the transaction is expected to close in the fourth quarter of 2009, the statement said.

“With this acquisition, we will double our asset base in Switzerland and strengthen our foothold in this important financial centre considerably. We will not only reinforce and expand our local Swiss onshore business, but also increase our market share in target growth markets such as the Middle East, Central and Eastern Europe as well as Latin America,” said HSH Prince Max von und zu Liechtenstein and chief executive of LGT Group.

Commerzbank, which has received public aid from the German taxpayer to strengthen its balance sheet, is shedding some of its non-German assets as part of the condition for receiving such aid under European Union law. It has already put its UK wealth management business, Kleinwort Benson, up for sale.

Dresdner Bank (Switzerland) was founded in 1972. When the deal is completed, it will be fully integrated into the Swiss subsidiary of LGT Group, LGT Bank (Switzerland).

At the end of 2008, assets under management at LGT Bank (Switzerland) amounted to SFr10.0 billion. Dresdner Bank is present in Zurich, Geneva and Lugano, while LGT has offices in Basle, Berne, Lucerne, Zurich, Geneva, Lausanne and Lugano as well as offices in Chur and Davos.