UnionBank to acquire 27.5% interest in ATRAM Group

Aboitiz-led Union Bank of the Philippines is spending P300 million to acquire a 27.5-percent stake in ATR Asset Management Inc. (ATRAM), resulting in a merger that will combine their respective trust subsidiaries.

-  KEISHA TA-ASAN

Under the terms of an investment agreement, ATRAM's existing shareholders will retain the remaining 72.5 percent.

The partnership will lead to a merger between Union Bank Investment Management and Trust Corp. (UBIMTC) and ATRAM Trust Corp., with ATC as the surviving entity. The consolidation leverages the strengths of both UnionBank and ATRAM to create a leading player in the trust industry with combined assets under management (AUM) exceeding P485 billion, based on the latest data.

"This partnership allows us to strengthen our offerings and provide even more tailored services to our customers, especially our larger Wealth client base as a result of the acquisition of Citibank Philippines' consumer banking business," UnionBank president and CEO Edwin Bautista said.