UBS has completed the previously announced acquisition of Nordea’s Luxembourg-based private banking business for an undisclosed price.
Under the terms of the deal signed in January 2018, the Swiss private bank through UBS Europe has acquired part of Nordea Bank’s business and its integration onto the former’s platform.
The acquisition is expected to offer clients access to global offering and local expertise.
Nordea decided to move ahead with the sale after a review of its private banking international activities. The review was part of the transformation of the company with the objective to manage risk in a better way, focus on its core business and create a better bank for its clients.
In July 2018, Nordea signed a deal to acquire Gjensidige Bank, a Norway-based online bank, for NOK5.5bn (€578m).
Last month, the Nordic financial services group said that it had extended its open banking platform to Sweden to allow developers to build applications to offer better financial solutions for Swedish and Finnish customers.
Nordea asset & wealth management head Snorre Storset said: “Our aim is to offer the best and most relevant services to our customers, and we are currently increasing our focus on private banking activities in the Nordics.
“We are certain that with UBS we have found a partner that will deliver high quality and professional advice in line with the needs and requirements of our international private banking clients.”
For UBS, the transaction allows it to grow its footprint in Europe and consolidate its position further as a major wealth manager for Nordic clients in the continent.
UBS head of wealth management for EMEA Christine Novakovic said: “Today, we can announce the completion of this important acquisition which enables us to strengthen our business hub in Luxembourg and our position as the leading wealth manager in Europe.
“With our experienced colleagues from Nordea joining we can tap into our full potential allowing us to deliver the best possible performance to our clients and business partners.”
UBS Europe was created in late December 2016 with headquarters in Germany and branches across Luxembourg, Italy, Spain, Austria, Denmark and Sweden. The UBS subsidiary serves as a European bank and a pan-European wealth manager.