Boston, MA 08/29/2014 (wallstreetpr) – Credit Suisse Group AG (ADR) (NYSE:CS) can acquire Julius Baer Group Ltd., the third-largest wealth manager of Switzerland. If it happens, Credit Suisse will get hold of performing assets that can help it to expand its operations in Asia. Acquisition of Julius can also act as a positive trigger for consolidating markets in Germany and Switzerland.
The mounting pressure
Credit Suisse is facing pressure to shift its focus from the investment banking to money management of wealthy people. The acquisition of Julius Baer can help Credit Suisse in fulfillment of its new objective. Also, with the new acquisition, Credit Suisse wealth management assets will cross 1.1 trillion francs. Julius Baer reported 272.2 billion francs worth of wealth management assets at the end of June 2014. Going by assets, Credit Suisse Group AG (ADR) (NYSE:CS) holds the fourth position in the list of biggest wealth managers whereas Julius Baer stands at rank twelve.
The financial penalties
Credit Suisse has already suffered setbacks at the start of the current year. The wealth management firm was found guilty in the matter of helping Americans in evading taxes. The official body didn’t revoke Credit Suisse’s licence but charged it with the financial penalties. It paid fine of $2.6 billion to resolve the investigation. Julius Baer is also involved in the tax dispute matters. It can follow the same path of Credit Suisse Group AG (ADR) (NYSE:CS) and can settle the dispute by paying the financial penalties. The fine amount and the other details are not disclosed by company.
The surge in stock price
The news was taken by the Julius Baer stocks positively as they surged more than 2.3% in Zurich markets. However, the stocks of Credit Suisse Group AG (ADR) (NYSE:CS) closed at a weak note, down 1.88% on Thursday. Daniel Sauter, Chairman of Julius Baer, said that the bank is looking for opportunities in M&A market. It agreed to acquire European operations of Leumi Le-Israel BM last month.
