By Andrew Morse
ZURICH--Credit Suisse Group AG (CS) said Wednesday it will buy a
Morgan Stanley wealth management unit for an undisclosed sum, a
move that comes as Swiss banks continue refining their private
banking businesses.
The Zurich-based bank said it was buying Morgan Stanley's wealth
management business for Europe, the Middle East and Africa,
expanding its presence in key markets, such as the U.K., Italy and
Dubai. The Morgan Stanley business has more than $13 billion in
assets under management and predominantly serves high-net worth and
ultra-high-net-worth clients across Europe.
The deal is expected to close later this year.
"Morgan Stanley has developed a strong foothold in wealth
management over the past years," Romeo Lacher, head of private
banking for Western Europe at Credit Suisse, said in a statement.
"Its high quality client base and experienced employees perfectly
complement our ambitions to grow our share in these areas.
The acquisition comes as Swiss banks continue to refine their
wealth management and private banking businesses. UBS AG (UBS), the
country's largest bank by assets, is dramatically slimming down its
investment banking business to concentrate on private banking and
wealth management, it's historic strengths.
Last year, Julius Baer Group AG said it would pay up to 860
million Swiss francs ($880 million) to buy Merrill Lynch's non-U.S.
wealth management operations from Bank of America Corp. (BAC).
A Credit Suisse spokesman said the acquisition complemented the
bank's strategy of offering integrated investment banking and
capital market services to its private banking and wealth
management clients.
The bank is concentrating on high-net-worth and
ultra-high-net-worth clients who require services, such as block
share trading and structured products, that Credit Suisse's
investment bank can offer, he said.
Credit Suisse has recently made other purchases to expand its
wealth management business. Last year, the bank purchased 50% of
Brazil's Hedging-Griffo that it didn't already own. In December
2011, it also bought HSBC's private banking business in Japan.
Write to Andrew Morse at andrew.morse@wsj.com