Deutsche Bank, UBS Asset Units in 'Serious' Merger Talks: FT

(Bloomberg) -- The asset-management units of Deutsche Bank AG and UBS Group AG are in “serious” talks to merge, the Financial Times reported Tuesday, citing people familiar with the matter it didn’t identify.

Discussions about a deal have been ongoing for “a couple of months” and one structure being considered is for UBS to split off its asset-management unit and fold it into Deutsche Bank’s DWS Group in exchange for shares in the larger group, according to the report. Deutsche Bank would remain the largest shareholder, the report said.

Representatives for UBS and DWS declined to comment on the Financial Times report.

Several asset managers including UBS have been studying a tie-up with DWS, Bloomberg reported previously. DWS is considering partnering with other managers in a way that would leave control with Deutsche Bank while boosting assets under management, Bloomberg first reported last week.

DWS Chief Executive Officer Asoka Woehrmann, who was appointed in October, has accelerated cost cutting as he tries to stem four consecutive quarters of client money flowing out of the company. He’s also conducting a review of the business, people familiar with the matter have said.

DWS had 662 billion euros ($742 billion) in assets under management at the end of 2018, while UBS had $781 billion.

--With assistance from Patrick Winters.

To contact the reporter on this story: Steven Arons in Frankfurt at sarons@bloomberg.net

To contact the editors responsible for this story: Dale Crofts at dcrofts@bloomberg.net, Sree Vidya Bhaktavatsalam, Steven Crabill

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