M and A
Swedish "Big Four" Bank Enters UK Wealth Market With Acquisition
Handelsbanken, the 141-year-old Swedish bank, is to acquire Heartwood, the UK wealth and investment management firm, in a move signalling Handelsbanken's push into the UK wealth management market.
Handelsbanken, the 141-year-old Swedish bank, is to acquire Heartwood, the UK wealth and investment management firm, in a move signalling Handelsbanken's push into the UK wealth management market.
The agreement, which remains subject to final shareholder and regulatory approval, will see Heartwood become a wholly-owned subsidiary of Handelsbanken.
Handelsbanken’s UK chief executive, Anders Bouvin, said the firm has “been aware of Heartwood for some time” and that the bank has observed from its clients a growing interest in UK wealth management services. Financial details of the acquisition “are not being made public at this time”, according to a statement from Heartwood.
Meanwhile, Simon Lough, who continues as CEO of Heartwood, said the move enables his firm to make its services available to “many new clients and in more ways”. Heartwood was founded 25 years ago and has over £1.5 billion ($2.4 billion) of funds under management, as at end-January.
The UK remains Handelsbanken’s fastest-growing market, according to its fourth quarter and full year results published this week; to date, it has announced branches in 147 UK communities.
As Handelsbanken’s UK provider of wealth and investment management services, Heartwood’s team of client advisors will work closely with the bank’s individual branches. The Swedish bank said the deal is expected to create new jobs and broaden career opportunities, both within its new wealth management operations and the wider UK organisation.
The deal is yet another in a string of wealth management M&A deals in as many months. Most recently, the merger of Quilter and Cheviot Asset Management was approved by the UK's Financial Services Authority last month (view here). Meanwhile, in October, Swiss wealth management boutique Falcon Private Bank agreed to buy Clariden Leu (Europe), the wholly-owned London-based subsidiary of Credit Suisse Group.
