UBS acquires Nordea's private banking business
Swiss bank UBS Europe has acquired part of Nordea's Luxembourg-based private banking business.
It comes following a strategic review of Nordea's Private Banking International activities as part of the company's transformation, which led to the decision to concentrate Nordea's private banking activities on the Nordics.
Nordea's assets under management amounted to €13 billion as at the end of 2017.
On Thursday, UBS Europe announced the acquisition agreement and Nordea Bank's integration onto UBS' advisory platform.
René Mottas, country head at UBS Luxembourg, said the transaction allowed UBS to move its business of servicing Nordic wealth management clients to a "leading position in Luxembourg and in Europe".
Nordea Asset Management will continue its business activities in Luxembourg after UBS acquires part of Nordea Bank's private banking business.
"Luxembourg is a financial centre for asset management," head of wealth management at Nordea, Snorre Storset, said.
"Hence it is natural for us to have a presence since competence and infrastructure is well established."
Last month, Nordea Bank was one of nine banks and investment firms to be fined by Luxembourg's financial watchdog, the Commission de Surveillance du Secteur Financier (CSSF), for breaching anti-money laundering rules in the wake of last year's publication of the Panama Papers.
Last year, UBS sold its domestic wealth-management activities in the Netherlands to Dutch fund manager Van Lanschot Kempen as part of its strategy to step back from some domestic markets and focus on providing cross-border services out of 'key hubs' like Luxembourg.
The completion of the transaction announced on Thursday is planned for the second half of this year, subject to regulatory approvals.