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.
Union Bancaire Privée said today it has agreed to acquire
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
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
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.