UBS and Deutsche Bank are in talks about merging their asset management arms in a move that would create a European giant that could challenge larger players.
One possibility is that UBS could move its €700 million (£606 million) asset management arm into Deutsche’s DWS in return for shares in the group, according to the FT.
The move would see the combined group control around €1.4 trillion, on a par with French firm Amundi, but still well behind US behemoths BlackRock and Vanguard, which run almost €12 trillion between them.
DWS, which was partially listed by Deutsche last year, is 79% owned by the German bank and has a current market value of €6.42 billion. However it suffered €22 billion of outflows last year, which it blamed on US tax reforms and the introduction of the Mifid II regime.