The asset management arms of Deutsche Bank AG and Swiss bank UBS Group AG are in “serious” merger talks, the Financial Times reported.
The talks have been going on for two months, the newspaper reported, adding that if the deal were to materialize, the combined business would have just over €1.4 trillion (US$1.57 trillion) of assets under management
A structure under consideration is for UBS to hive off its asset management business and fold it into DWS, which is mostly owned by Deutsche Bank, the newspaper said.
One structure being considered would see UBS hive off its asset management unit, which oversees €700 billion (US$780.7 billion), and fold it into Deutsche’s DWS in exchange for shares in the larger group. DWS, which is 79% -owned by Deutsche, has €662 billion (US$738.3 billion) of assets under management. The German bank would remain the company’s top shareholder, but its interest would be diluted.
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