UBS chairman revives mega-merger vision with deal wish list

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[LONDON] UBS Group chairman Axel Weber is reviving a decade-long push for a mega-merger to create a European banking behemoth that can compete with US rivals. Read more at The Business Times.

While domestic mergers are heating up, the lack of a common deposit plan and banking union make deals between banks in different countries less attractive.

The chairman has already been at the bank for about eight years and has openly spoken about his own succession planning and tenure limits and of the need for the board to look at peers for inorganic growth. That deal - in theory at least - would marry Deutsche Bank's fixed-income focus with UBS's bigger equities business. It would also bring together UBS's wealth management prowess with Deutsche Bank's access to German entrepreneurs.

Last year's discussions with UBS ended because of diverging views on each bank's valuation, the person said. The Swiss firm's market value of 42.5 billion francs is about three times that of its German rival.Yet the strategy considerations also come at a time of internal change as the bank prepares to usher in a new leadership era.

Mr Weber has been exploring that option with external consultants but hadn't raised the topic to the level of the board of directors until now. The UBS assessment was part of the regular internal planning procedures that happen every year, said the people.

 

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