UBS, Deutsche Bank in asset management merger talks

UBS, Deutsche Bank in asset management merger talks

Reports by the Financial Times allege, “serious” merger talks between the asset management units of Deutsche Bank AG and Swiss bank UBS Group AG. The merger has been in motion since the past two months. Should the two banking brands come together, the combined business of assets under management would escalate to over 1.4 trillion euros ($1.57 trillion).

UBS is considering to split off the structure of its asset-management unit and to incorporate it with Deutsche Bank’s DWS Group in exchange for shares in the larger group. The initiation of UBS deal with DWS was in progress for “a couple of months”. DWS is considering partnering with other managers in tandem. The partnerships will be designed in such a manner, that it will leave most of the control with Deutsche Bank while boosting assets under management. Through this new development, with UBS, Deutsche Bank would again remain the largest shareholder. Past reports hint on the several asset managers including UBS, who have been working over a possible tie-up with DWS. According to reports, the Chief Executive Officer of DWS, Asoka Woehrmann, accelerated cost-cutting as he tried to curb four consecutive quarters of client money flowing out of the company.

DWS had 662 billion euros ($742 billion) in assets under management at the end of 2018, while UBS had $781 billion. UBS Group AG is a Swiss multinational investment bank and financial services company. It was founded and is based in Switzerland, with headquarters in the cities of Zürich and Basel. UBS holds the reputation of the largest Swiss banking institution in the world. DWS Group & GmbH Co is a Europe-based global asset management company, headquartered in Germany.