Union Bank of the Philippines (UnionBank) and the ATRAM Group are merging their trust subsidiaries to create a leading player in the trust industry with combined assets under management (AUM) of over P485 billion.
A trust company, usually affiliated with a bank, manages trusts, trust funds and estates for individuals and businesses.
UnionBank said in a disclosure to the Philippine Stock Exchange Monday both parties signed an investment agreement, where it will hold a 27.5-percent ownership stake in ATR Asset Management Inc. (ATRAM). The existing ATRAM shareholders will retain the remaining 72.5 percent.
The deal will result in the merger of Union Bank Investment Management and Trust Corp. (UBIMTC) and ATRAM Trust Corp. (ATC), with ATC as the surviving entity.
“This merger aims to leverage the strengths of both organizations, creating a robust platform for growth and innovation in the asset and wealth management sector,” UnionBank said.
UnionBank president and chief executive Edwin Bautista said the partnership aims to provide clients with a diverse range of high-quality financial products.
“This partnership allows us to strengthen our offerings and provide even more tailored services to our customers, especially our larger wealth client base as a result of the acquisition of Citibank Philippines’ consumer banking business. We are committed to ensuring they have access to the best financial solutions available while also creating broader career opportunities for our employees in a larger and very dynamic organization,” he said.
The investment and merger are subject to regulatory approvals and follow a rigorous evaluation process to ensure a seamless integration that prioritizes client service and employee well-being.
AlphaPrimus Advisors acted as financial advisor to ATRAM, while Exchange Equity Partners served as financial advisor to UnionBank in the transaction.
ATRAM Group acquired First Metro Asset Management Corp. from Metrobank-owned First Metro Investment Corp (FMIC) in October.
ATRAM is one of the leading independent asset management firms in the country, ranking fourth among active investors in the trust industry, with asset under management of over P385 billion as of Sept. 30, 2024.
