Liechenstein-based private bank LGT has agreed to buy the domestic wealth management business of UBS in Austria for an undisclosed amount.
Transaction details
The purchase adds nearly €4bn ($4.8bn) in assets under management to LGT Bank Österreich’s books, increasing its assets to €12bn.
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Moreover, LGT will absorb nearly 60 employees of the UBS unit, which mainly caters to HNWIs and UHNWIs in the country.
The UBS staff moving to LGT will be integrated into the latter’s Vienna and Salzburg locations.
Under the asset deal signed with UBS Europe SE, LGT will also take over the client relationships of the acquired business.
Going forward, UBS will continue to offer asset management services in Austria.
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By GlobalDataLGT CEO Prince Max von und zu Liechtenstein called Austria an “integral part” of the firm’s strategy in Europe.
He stated: “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.”
LGT has been operating in Austria since 2007. It has a staff strength of 170 in Vienna and Salzburg.
Leadership changes
Upon deal completion in the third quarter of next year, LGT Bank Österreich co-CEO Meinhard Platzer will become the sole CEO.
Existing LGT Bank Österreich co-CEO Dietmar Baumgartner will become the CFO and also manage back office areas.
Former UBS Austria CEO Wolfgang Eisl will oversee the market area Austria as part of LGT Bank Österreich’s executive board.
Eisl noted: “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.”
He further stressed that despite the sale, European wealth management operations will continue to be a strategic core business for UBS.
UBS Europe SE CEO Christl Novakovic said that the deal will enable UBS to redeploy resources to drive growth in its other European markets.
Other LGT deals
This October, LGT completed the acquisition of LGT Vestra by purchasing the remaining equity held by the executive partners in the firm.
In August last year, the Vaduz-based bank acquired Indian impact investor Aspada from the Soros Economic Development Fund.
Earlier in 2019, LGT agreed to buy a majority stake in India’s Validus Wealth.
