Based in Milan, Santander Private Banking (SPB Italia) has $2.9bn worth of assets under management, according to media sources.
With six branch offices in Milan, Varese, Brescia, Rome, Napoli and Salerno, SPB Italia offers financial advice and investment products to high-net worth individuals and their families.
UBS Italia CEO Fabio Innocenzi was quoted by the media sources as saying: "This transaction is a natural fit with our current wealth management offering in Italy in terms of both business and culture.
"It also represents a perfect opportunity to grow UBS’s business and to further expand our market share in Italy."
The acquisition is expected to be completed in the first quarter of 2016. It is in line with UBS’ strategy to focus on wealth management, The New York Times reported.
Upon completion of the deal, SPB Italia’s business will be combined into UBS Italia’s operations.
A source familiar with the matter at Banco Santander was quote by The Financial Times as saying: "The private banking business in Italy hasn’t gone as expected. There’s not enough volume to support the necessary infrastructure.
"On the other hand UBS has a strong position in Italy so it made sense to transfer the business to them."
With over 60,000 employees, UBS provides investment banking, asset management, and wealth management services for private, corporate, and institutional clients across the world.
Image: Banco Santander operates through 12,951 branches worldwide. Photo: courtesy of Junius / Wikimedia Commons.
