Bank of America Corporation announced today that it has agreed to sell its international wealth management businesses based outside of the U.S. to Julius Baer Group, the leading Swiss private banking group, for an estimated 1.2 percent of client assets. Consideration received will be comprised of up to $250 million in new Julius Baer shares, and the remainder in cash. As of 30 June 2012, the businesses to be sold had client assets of $84 billion. The final purchase price will be dependent on assets under management at completion of the sale. The transaction is expected to close in stages starting in the fourth quarter of 2012 or in early 2013 and is subject to regulatory approvals.
Internationally, Bank of America will focus its management and financial resources on continuing to build its leading Global Banking and Markets business. Related to this, Julius Baer and Bank of America Merrill Lynch have agreed to enter into a cooperation agreement whereby Bank of America Merrill Lynch will provide certain products and services to Julius Baer including the provision of global equity research, product offerings, and structured and advisory products. In addition we have agreed there will be cross-referral of clients between both organizations.
The sale does not include Bank of America’s Japanese joint venture, Mitsubishi UFJ Merrill Lynch PB Securities or international wealth management offices based in the United States. The transaction will have an immaterial impact on Bank of America’s balance sheet, financial results and capital ratios .
Bank of AmericaBank of America is one of the world's largest financial institutions, serving individual consumers, small- and middle-market businesses and large corporations with a full range of banking, investing, asset management and other financial and risk management products and services. The company provides unmatched convenience in the United States, serving approximately 56 million consumer and small business relationships with approximately 5,600 retail banking offices and approximately 16,200 ATMs and award-winning online banking with 30 million active users. Bank of America is among the world's leading wealth management companies and is a global leader in corporate and investment banking and trading across a broad range of asset classes, serving corporations, governments, institutions and individuals around the world. Bank of America offers industry-leading support to approximately 4 million small business owners through a suite of innovative, easy-to-use online products and services. The company serves clients through operations in more than 40 countries. Bank of America Corporation stock (NYSE: BAC) is a component of the Dow Jones Industrial Average and is listed on the New York Stock Exchange.
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