LGT has reached an agreement with UBS Europe SE to acquire its wealth management business in Austria.
The business has around €4bn (£3.6bn, $4.9bn) in assets under management.
The client relationships of UBS Europe SE in Austria, which consist of mainly high net worth and ultra-high net worth individuals residing in the country, will be assumed by LGT as part of the asset deal.
As part of the agreement, LGT intends to assume the around 60 employees of UBS Wealth Management in Austria and to integrate them into its locations in Vienna and Salzburg.
The two parties have agreed not to disclose the purchase price and deal will complete in 2021.
In the future, UBS will focus on the local provision of asset management services in Austria.
Management
The existing managerial structure will change adapted at the time of the deal close.
The current co-chief executive Meinhard Platzer will remain in overall charge of LGT Bank Österreich as chief executive.
Dietmar Baumgartner will take on the role of chief financial officer and will be responsible for the back-office areas.
Wolfgang Eisl, the former chief executive of UBS in Austria, will be responsible for the market area Austria as a member of the executive board of LGT Bank Österreich.
Strategy
Prince Max von und zu Liechtenstein, chief executive of LGT, said: “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.
“We also want to welcome our future colleagues to LGT. Austria is an integral part of our strategy in Europe.”
Christl Novakovic, chief executive of UBS Europe SE and head wealth management Europe at UBS, added: “Clients and staff in Austria will benefit from being part of a bigger domestic business in Austria and clients in our other European markets will benefit from even more focus and investment as we redeploy resources to client services and accelerated growth in these markets.”
