Switzerland’s Union Bancaire Privée said today it has agreed to acquire London-listed Lloyds Banking Group’s International Private Banking business, a move happening at a time when Lloyds has been looking to spin off businesses as it seeks to return to full private ownership.

Switzerland’s Union Bancaire Privée said today it has agreed to acquire London-listed Lloyds Banking Group’s International Private Banking business, a move happening at a time when Lloyds has been looking to spin off businesses as it seeks to return to full private ownership.

UBP said the acquisition, which will increase its assets under management by SFr10 billion, up from SFr83.2 billion ($86.2 billion) as of 30 April, is a “key step in the execution of UBP’s strategy to grow its global presence and to expand its private banking activities”.

The purchase price was not disclosed.

“This acquisition further boosts UBP’s standing both in Switzerland and in its core growth markets, such as the Middle East and Latin America. Once the requisite regulatory licences have been granted, Monaco and Gibraltar will become part of UBP’s global footprint,” it said.

Lloyds which has been partly owned by the UK taxpayer since it was bailed out after the 2008 financial crisis, has been looking to dispose of certain business lines. For example, earlier this month it placed around £450 million ($678.2 million) of shares after announcing it will sell stocks in St James’s Place, the wealth management business.

The move is also a reminder of how the wealth management industry has seen a number of merger and acquisition moves in recent months, such as the sale by Credit Suisse of its Clariden Leu (Europe) business to Switzerland’s Falcon Private Bank. Other deals include last year’s acquisition by Julius Baer of the non-US wealth management arm of Bank of America Merrill Lynch. (Julius Baer this week announced the transfer of businesses from Merrill in Hong Kong and Singapore.) Other transactions have included Brazilian bank Safra’s purchase of Sarasin, the Swiss bank, from its Dutch parent Rabobank; Quilter and Cheviot Asset Management, two mid-tier UK wealth firms, joined forces last year. BSI, the Swiss private bank that is owned by Generali, the Italian insurer, is up for sale.

“This acquisition further strengthens our position at the forefront of the industry and confirms our commitment to our bank’s two core businesses – international private banking and asset management. We look forward to welcoming Lloyds’ teams and their expertise that we will put to use on an even larger scale. With our competitive range of private banking services and investment solutions, we are bringing our proficiency as a major Swiss and international-wealth-management player to Lloyds’ private clients,” UBP’s  chief executive, Guy de Picciotto, said.

UBP said that after the acquisition, UBP will continue to be strongly capitalised with a Tier 1 ratio above 30 per cent.

“Lloyds’ expertise in the fields of private banking, asset management and wealth planning has long been recognised throughout the industry. This talent ideally complements UBP’s skills in providing wealth-management solutions to both private and institutional clients. Moreover, Lloyds’ continuous adaptation to the recent regulatory changes and developments is perfectly in line with UBP’s corresponding strategy,” it said in a statement.

The transaction, carried out with support from Caurus Partners and Millenium Associates, remains subject to the requisite regulatory approvals being completed.