The deal increases the AUM of LGT’s Austrian subsidiary by €4bn to €12bn
UBS Europe has agreed to divest its domestic wealth management business in Austria to LGT, a Liechtenstein-based private banking and asset management company.
The financial terms of the deal were not disclosed.
The business being sold by UBS Europe has nearly €4bn in assets under management (AUM) and approximately 60 employees.
As part of the deal, the wealth management business’ employees and all client relationships, products, and services will be transferred to LGT.
The deal does not include UBS Asset Management business in Austria.
UBS Austria country head Wolfgang Eisl said: “Our domestic wealth management business in Austria has developed well and yielded sustainable profits over the past few years, but our market share remains comparatively small.
“After a thorough review and analysis over the course of this year, we came to the conclusion that UBS Austria is better positioned for future growth with a leading wealth manager in Austria.
“LGT has an excellent market position and, due to its size in Austria, offers our clients and employees a long-term and sustainable future perspective.”
Eisl added that UBS will continue to treat its European wealth management operations as a central and strategic core business.
LGT said that the acquisition will increase the assets under management of its Austrian subsidiary LGT Bank Österreich from nearly €8bn, as at mid-2020, to €12bn. The increase in AUM will make LGT Bank Österreich a leading private bank for high-net-worth private clients in Austria, claimed LGT.
LGT CEO Prince Max von und zu Liechtenstein said: “We very much look forward to welcoming the clients of UBS Europe SE in Austria to LGT. We are convinced that our stability, our tradition in private banking and our investment expertise, particularly also in the area of alternative and sustainable investments, make us a reliable and attractive partner for these clients.”
Subject to approval from the relevant antitrust body, the deal is expected to close in Q3 2021.