THE ATR Asset Management Group (ATRAM Group) and Union Bank of the Philippines, Inc. (UnionBank) have formalized their strategic partnership for the merger of their trust units, with combined assets amounting to about P470 billion.

This follows the Bangko Sentral ng Pilipinas’ (BSP) approval of the merger transactions last month, the companies said in a joint statement on Thursday.

Under the deal announced and finalized in November last year, UnionBank will acquire a 27.5% stake in the ATRAM Group’s ATR Asset Management, Inc. (AAMI) and sell 100% of its shares in its stand-alone trust subsidiary UnionBank Investment Management and Trust Corp. (UBIMTC) to AAMI. The ATRAM Group will keep its 72.5% majority stake in AAMI.

The transaction will result in the merger of UBIMTC with ATRAM Trust Corp. (ATC), with the latter as the surviving entity.

The partnership will form the fourth-largest private asset management firm in the Philippines, the companies said. ATC ended 2024 with trust assets worth P363.29 billion while UBIMTC had P108.75 billion, latest BSP data showed.

The companies said that the partnership will combine both firms’ strengths to offer more personalized and accessible wealth management solutions to their clients.

“This milestone marks a pivotal step for UnionBank as we combine our digital leadership with ATRAM’s investment expertise to create smarter, more accessible wealth solutions for Filipinos. Together, we’re redefining asset management through digital-first innovation,” UnionBank President and Chief Executive Officer Ana Maria Aboitiz-Delgado said.

“With UnionBank, we’re powering next-generation world-class digital investment solutions that grow client wealth. By leveraging digital innovations with our investment expertise, we are set to drive long-term financial growth and raise industry standards,” ATRAM Group Chief Executive Officer Michael V. Ferrer said.

Last year, the ATRAM Group finalized its acquisition of First Metro Investment Corp.’s (FMIC) controlling stake in First Metro Asset Management, Inc. FMIC is the investment banking arm of listed Metropolitan Bank & Trust Co.

UnionBank booked a net income of P1.43 billion in the first quarter, down from the year prior due to one-time tax-related write-offs from a subsidiary and front-loaded non-recurring costs.

Its shares closed unchanged at P32.25 each on Thursday. — BVR

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