Julius Baer plans to buy Swiss rival EFG, reports Bloomberg News

(Reuters) – Swiss private banking group Julius Baer is studying a possible acquisition of its rival EFG International, Bloomberg News reported on Friday, citing sources familiar with the matter.

There is no certainty that negotiations between the two companies will result in a transaction, the report said.

Swiss private bank EFG International has a market valuation of more than $4 billion, according to LSEG data.

Julius Baer and EFG International declined to comment for this report.

A deal between the two Swiss banks could create a wealth manager with more than 500 billion Swiss francs ($547.11 billion) in assets under management, according to the Bloomberg report.

Swiss financial regulator FINMA has opened an investigation into Julius Baer over its risk controls, Bloomberg reported in December last year. The investigation could complicate major transactions.

EFG, which managed 142.2 billion francs in assets at the end of 2023, told analysts in February that it was looking for significant acquisitions given its large capital surplus.

($1 = 0.9139 Swiss francs)

(Reporting by Chandni Shah in Bangalore; Editing by Ravi Prakash Kumar)