Switzerland’s Julius Baer to buy BofAML’s non-US wealth units for $882 mn

Switzerland's private bank Julius Baer today said that it will buy the non-US wealth management business of Bank of America Merrill Lynch (BofAML), for CHF860 million ($882 million), expanding its client assets by 40 per cent.

Zurich-based Julius Baer, Switzerland's third-biggest listed bank, will buy BofAML's International Wealth Management business outside the US with $84 billion of assets under management (AUM) as of 30 June 2012 and over 2,000 employees, including more than 500 financial advisers.

The acquiring business has clients in Europe, the Middle East and Africa, and high-net-worth customers in Latin America and Asia, excluding Japan.

According to Julius Baer, the transaction is a combination of legal entity acquisitions and business transfers that, by the end of the expected two-year integration period, is currently estimated to result in additional AUM of between CHF57 billion and CHF72 billion, of which around two thirds are from growth markets.

Julius Baer, which acquired ING Groep NV's Geneva-based wealth business in 2009, said its current AUM would increase by approx 40 per cent to CHF251 billion and its total client assets to CHF341 billion.

As part of the deal, Julius and BofAML have agreed to enter into a cooperation agreement whereby BofAML will provide certain products and services to Julius Baer, including global equity research. In addition, there will be cross-referral of clients between both organisations.