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Deutsche Bank talks with UBS on asset management deal stall - sources

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Deutsche Bank talks with UBS on asset management deal stall - sources
FILE PHOTO: People are silhouetted next to the Deutsche Bank's logo prior to the bank's annual meeting in Frankfurt, Germany, May 24, 2018. REUTERS/Kai Pfaffenbach   -   Copyright  KAI PFAFFENBACH(Reuters)
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By Arno Schuetze and Angelika Gruber

FRANKFURT/ZURICH (Reuters) – Talks between Deutsche Bank and UBS to tie up their asset management businesses have stalled, three people familiar with the matter said.

Differences over which bank would control the combined entity have been the main hurdle, two of the people said.

The people, speaking on condition of anonymity, said such a tie-up still made strategic and financial sense and they did not rule out a revival of talks in the future.

Deutsche Bank and DWS declined to comment. UBS was not immediately available for comment.

The idea of merging the businesses had mushroomed in recent months as Deutsche discussed a possible merger with smaller rival Commerzbank. A deal for Deutsche’s DWS asset management unit could have been a way to finance that merger.

But with the Commerzbank talks having ended in failure, the urgency to do a deal has fizzled.

Any deal to merge DWS with a peer and give it additional scale could also be presented as a strategic revamp of Deutsche after the failure of the Commerzbank talks.

A combined UBS asset management unit and DWS would have just over 1.4 trillion euros (1.21 trillion pounds) of assets under management and was considered a good fit because the two are roughly the same size.

(Reporting by Arno Schuetze in Frankfurt and Angelika Gruber in Zurich; Writing by Tom Sims; Editing by Michelle Martin)

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