Swiss bank Union Bancaire Privée (UBP) has announced the acquisition of Danske Bank’s wealth management business in Luxembourg, operating under the name Danske Bank International (DBI).
Established in Luxembourg since 1976, DBI specialises in international private banking activities with almost a thousand clients in some sixty countries. Its client base consists mainly of wealthy private clients from the Nordic countries–mainly Denmark–residing abroad, particularly in Europe. It currently employs 70 people.
Union Bancaire Privée (UBP) is one of the leading private banks in Switzerland. This family-owned bank specialises in wealth management for private and institutional clients. It is based in Geneva and employs 1,812 people in more than 20 locations worldwide. It has been present in Luxembourg since 2002 through its subsidiaries UBP Asset Management (Europe) and Union Bancaire Privée (Europe) for its wealth management activities. It is the latter that is taking over the operational activities of DBI.
CHF 33 billion of assets under management in Luxembourg for UBP
“Thanks to this acquisition, UBP–which had 147.4 billion Swiss francs in assets under management at the end of December 2020–is continuing to develop its activities in Luxembourg, where the bank’s AUM will total around 33 billion Swiss francs once the transaction is finalised,” the Swiss bank said in a statement. Guy de Picciotto, CEO of UBP, said: “With this acquisition, we confirm our ambition to expand our footprint in Luxembourg, which has been our bank’s European hub for several years now. It fits perfectly with our growth strategy in the Nordic markets, and the addition of experienced bankers and investment professionals will strengthen our offering and expertise for this client base, as well as our local management teams.
The transaction, which consists of an asset deal–understanding the direct acquisition of the assets–the amount of which was not disclosed, is subject to regulatory approval, and the acquisition is expected to be completed in the fourth quarter of 2021.
KPMG Advisory acted as exclusive advisor to Danske Bank in the sale of its subsidiary.