The Swiss giant is selling its wealth management activities in neighboring Austria to a far smaller rival.
Vaduz-based LGT is buying Zurich-based UBS' private bank in Austria, it said in an emailed statement on Wednesday. Neither party disclosed financial details of the deal, which includes 4 billion euros ($4.9 billion) in assets and 60 staff.
The surprise sale leaves UBS to focus on asset management in Austria. By contrast, it takes LGT in Austria to around 12 billion euros under management when the deal closes, which is expected in the third quarter. It currently manages around 8 billion euros.
Local Revamp
LGT uses its Austria operations – in Vienna and Salzburg – both for domestic clientele and as a gateway to wider Eastern Europe. Following the UBS acquisition, LGT's co-head of Austria Meinhard Platzer will take over as sole CEO. His co-CEO, Dietmar Baumgartner, becomes finance chief including overseeing back office areas.
UBS' current head of Austria, Wolfgang Eisl, will oversee the market area Austria for LGT as well as sit on the bank's local management. LGT has run its own bank in Austria, where it employs 170 people, since 2007.
