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Union Bank of the Philippines, led by Aboitiz, has announced a merger with wealth management company ATRAM Group. This merger will consolidate their trust corporations, Union Bank Investment Management and Trust Corporation, and ATRAM Trust Corporation (ATC), with ATC as the surviving entity. The investment agreement with the ATRAM Group will result in Union Bank holding a 27.5% stake in ATR Asset Management Incorporated, while current ATRAM shareholders will retain the remaining 72.5%.

The ATRAM Group believes that this merger will significantly increase scale and capabilities in the asset and wealth management industry, creating a leading player with combined assets under management of over P485 billion. Union Bank, known for its digital banking services with over 15 million clients, aims to strengthen its offerings and provide tailored services to its customers, especially its larger wealth client base. ATRAM, on the other hand, boasts of more than 2 million retail investors through its digital platforms and partnerships.

Both Union Bank and ATRAM see this partnership as an opportunity to leverage each other’s strengths and create a robust platform for growth and innovation in the asset and wealth management sector. Union Bank’s President and CEO, Edwin Bautista, expressed their commitment to providing the best financial solutions to their customers and creating broader career opportunities for their employees in a larger organization.

ATRAM’s CEO, Michael Ferrer, views this merger as a milestone for the company, aligning with Union Bank, a leader in digital innovation. Together, they aim to redefine the asset management landscape in the Philippines and provide clients with an expanded suite of investment solutions. ATRAM Group, known for offering mutual fund, unit investment trust fund, and trust services, believes that integrating Union Bank’s digital expertise with their asset management solutions will benefit clients with a diverse range of high-quality financial products.

The merger is still subject to regulatory approvals, with AlphaPrimus Advisors acting as the financial advisor to ATRAM and Exchange Equity Partners serving as the financial advisor to Union Bank in the transaction. Union Bank, a publicly listed universal bank, has major shareholders like Aboitiz Equity Ventures, Social Security System, and Insular Life Assurance Limited. On the other hand, ATRAM Group is owned by three shareholder groups: ATR Holdings Incorporated, BHF Partners Holdings Incorporated, and A. Soriano Corporation.

Overall, this merger between Union Bank and ATRAM Group signifies a strategic move to enhance investment opportunities, strengthen digital capabilities, and provide tailored financial services to clients in the Philippines. It sets the stage for a new era in the asset and wealth management industry with a focus on innovation and customer-centric solutions.