Deutsche Bank has agreed to sell its Russian capital management unit Deutsche UFG Capital Management (DUCM) to German conglomerate Aton Group.

DUCM is a privately owned investment manager that provides its services to private clients as well as institutional investors, including non-state pension funds and insurance companies.

The deal is expected to create one of the largest asset management companies in Russia, with total client assets of RUB118.4 billion (US$3.6 billion).

The acquisition is subject to the approval of the Federal Antimonopoly Service of the Russian Federation.

ATON said that the proposed transaction is in line with its long-term strategy and will expand the product line for ATON and DUCM clients.

Andrey Zvezdochkin, CEO of ATON, said: "The acquisition of Deutsche UFG Capital Management is a strategic decision for us. We are confident that this transaction will help us to strengthen our team, and expand our product range and distribution channels.

"We will be able to offer a wider range of products and services to asset management clients. We are optimistic about the prospects of the Russian investment market and believe that the combined company will be able to achieve our goals successfully."

In 2008, Deutsche Bank sold another Russian fund management company, DWS Investment, to Fleming Family & Partners, three months after it bought the 40% stake in UFG.