UBS and Deutsche in ‘serious’ talks over asset management merger

The asset management divisions of Deutsche Bank and UBS are in “serious” talks over a potential merger, according to reports.

The combined businesses would have more than €1.4 trillion (£1.2 trillion) of assets under management, overtaking Legal and General in the UK and France’s Axa to create a rival to Amundi, which is Europe’s largest asset management firm.

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Discussions over a deal have been ongoing for a couple of months, the Financial Times reported, citing sources close to the talks.

Proposals include UBS folding its €700bn asset management arm into Deutsche’s DWS in exchange for shares.

A merger could help the firms compete with US asset management giants Blackrock and Vanguard, which have combined assets under management of $11.7 trillion.

Once the world’s largest asset manager, UBS suffered a decline after the financial crisis and fell to the 16th spot globally. 

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A deal is not guaranteed and an announcement is not imminent, people close to the discussions told the Financial Times.

UBS and Deutsche Bank declined to comment.