UBS puts Merrill Lynch German arm in basket
Swiss banking giant on track to expand wealth operations in Europe.
Competition and consolidation among banks in Germany is heating up with UBS continuing its European spending spree by purchasing Merrill Lynch’s German private client business.
Jürg Zeltner, chief executive of UBS Wealth Management, said it was part of a “systematic effort” to expand the UBS wealth operation in Europe. In May, UBS bought the French wealth management business of the UK’s Lloyds TSB.
Merrill’s German private client offices in Frankfurt and Munich run about E1.5bn in assets for ultra and high net worth investors. Their activities are to be integrated into UBS by February 2004.
Ausaf Abbas, head of Merrill Lynch Global Private Client, said the sale followed a “strategic review”. The US bank concluded it should concentrate on its corporate, institutional and asset management businesses in Germany. The purchase price was not disclosed.
UBS rival in Germany Commerzbank has meanwhile added a new external fund manager to its line up. SEI Investments has been hired by the German bank to provide its Dublin-domiciled multi-manager funds for retail and private clients.
Commerzbank recently announced a E2.3bn write-down and a E760m share issue. The balance sheet clean up has prompted merger rumours. Names believed to be in the ring include Credit Suisse and HypoVereinsbank.
Commerzbank: See Big Interview, pages 12-13
