La Caixa, Spain’s largest savings bank, has agreed to buy the brokerage and asset management arm of Morgan Stanley in Spain for around $885 million, the Financial Times reports.
The Spanish bank will purchase the Spanish private banking unit, which currently has $13.25 billion of assets under management.
Spain’s sixth-biggest wealth manager will be sold to La Caixa, meaning that the institute will acquire new clients.
However, Morgan Stanley will hold on to the private banking business of high net worth individuals as well as its capital markets and investment banking activities in Spain.
La Caixa already has approximately 8, 000 of the wealthiest people in its private banking business, but the addition of Morgan Stanley’s domestic asset management business will allow the US investment bank to expand its operations further.
Both parties have agreed to a three-month due diligence period before a final price is settled.