The deal involves its businesses based outside of the United States and does not include Bank of America’s Japanese joint venture, Mitsubishi UFJ Merrill Lynch PB Securities, or international wealth management offices based in the United States.
The final purchase price will be dependent on assets under management at the completion of the sale and the deal, which is subject to regulatory approvals is expected to close in stages starting in the fourth quarter of 2012 or early in 2013.
As of 30 June 2012, the businesses to be sold had client assets of $84bn. Consideration received will be comprised of up to $250m in new Julius Baer Group shares and the remainder in cash.
Internationally, Bank of America will focus its management and financial resources on continuing to build its Global Banking and Markets business.
Related to the deal, Julius Baer and Bank of America Merrill Lynch have also agreed to enter into a cooperation agreement whereby Bank of America Merrill Lynch will provide certain products and services to Julius Baer including the provision of global equity research, product offerings, and structured and advisory products.
They have also agreed upon a cross-referral of clients between both organisations.
In a statement Bank of America said the transaction would have an immaterial impact on its balance sheet, financial results and capital ratios.
