Union Bancaire Privée said it will acquire a Luxembourg-based private bank. The deal reinforces the Geneva-based private bank's European hub in the Grand Duchy.

Union Bancaire Privée said it will buy Banque Carnegie Luxembourg, the private banking arm of an investment bank of the same name. Neither party disclosed financial details of the transaction, expected to close in the fourth quarter.

Owned and run by Guy de Picciotto, UBP has been on an acquisition spree in recent years, part of an effort to bulk up as survival criteria in the Swiss industry toughen up. Three years ago, UBP snapped up Coutts International's client assets, and in 2016, it clinched a fund deal with Skandinaviska Enskilda Banken, or SEB, over fund distribution.

With 2 billion euros ($2.32 billion) in assets at year-end, Carnegie's wealth arm is one of the smaller players in Luxembourg, which is dominated by European giants such as Société Générale. UBP said the deal will vault its assets to almost 24 billion Swiss francs ($24.2 billion), including asset management funds.

European Linchpin

Carnegie's wealth arm, owned by Stockholm-based Carnegie Investment Bank, caters to Nordic clients. UBP, which like Julius Baer maintains its European hub in the Grand duchy, sees the deal as a linchpin into the trading bloc.

«In a period where access to the European Union is crucial, we are extremely pleased with this transaction which reflects our desire to reinforce our presence in Luxembourg,» CEO de Picciotto said in a statement.

Carnegie's investment bank owner said UBP had the capacity to keep developing the private banking assets. UBP has been in Luxembourg, where it employs more than 30 staff, since 2002. Carnegie's parent said it will focus on domestic markets following the disposal.