By John Letzing
ZURICH--Julius Baer Group AG (BAER.VX) said Tuesday that it had
absorbed Bank of America Corp.'s (BAC) Merrill Lynch
wealth-management businesses in four regions in South America and
Europe, part of the Swiss bank's bid to expand its asset-management
business.
The Zurich-based bank said Merrill Lynch businesses in Chile,
Uruguay, Luxembourg and Monaco were transferred to Julius Baer as
part of its 860 million Swiss franc ($880 million) purchase of Bank
of America's overseas wealth-management operations. The acquisition
was announced in August.
Julius Baer Chief Executive Boris Collardi said the new
operations expand the bank's business in Latin America and Monaco,
as well as enable it to enter "the market in the important
financial center Luxembourg with a substantial client base."
In February, Julius Baer said the deal had closed and that it
would begin absorbing Merrill Lynch operations in a staggered
process that was expected to take place over roughly two years. The
bank expects to absorb other Merrill Lynch operations, including
those in Hong Kong, Singapore and the U.K., later this year.
Julius Baer's purchase of the Merrill Lynch operations comes as
Swiss banks hone their wealth-management and private-banking
businesses. Last week, Credit Suisse Group AG (CS) agreed to buy a
Morgan Stanley wealth unit for an undisclosed sum, while UBS AG
(UBS) has sought to trim its investment banking business as it
focuses on private banking and wealth management.
Julius Baer is trying to bolster its presence in wealth
management, where it trails UBS and Credit Suisse in terms of
assets under management.
In February, Julius Baer said its assets under management rose
11% last year compared with 2011, reaching CHF189 billion. UBS
reported CHF1.26 trillion in total assets last year, while Credit
Suisse has reported that it had CHF1.25 trillion in assets under
management last year.
-Write to John Letzing at john.letzing@wsj.com