UnionBank merges with ATRAM Group to manage P485B

UnionBank announced a merger with wealth management company ATRAM Group on Monday, November 11, aiming to create a leading player in the trust industry by leveraging UnionBank's digital expertise and ATRAM's innovative asset management solutions.

Under the agreement, UnionBank will acquire a 27.5% stake in ATR Asset Management Incorporated (AAMI) while current ATRAM shareholders retain the remaining 72.5%. The combined entity will manage over P485 billion in assets.

UnionBank President Edwin Bautista said the partnership allows them to strengthen their offerings and provide tailored services to customers, especially those from the acquired Citibank Philippines' consumer banking business.

The merger aims to redefine the asset management landscape in the Philippines by integrating UnionBank's over 15 million clients with ATRAM's more than 2 million retail investors.

UnionBank will buy 82,972,356 common shares of AAMI for P3.61 each and sell 300,000,000 UBIMTC common shares to AAMI for P1 apiece, with the transaction subject to regulatory approvals.