Wells Fargo & Co is exploring a disposal of its asset management business, people familiar with the matter told Reuters.
According to two of the sources, the sale could be worth up to USD 3.00 billion.
The San Francisco-based lender has been in talks with other asset management companies and private equity firms, the insiders noted, adding Wells Fargo is planning to target USD 10.00 billion in savings annually over the long term.
Charles Scharf joined the bank as chief executive last year and recently told analysts he is exploring a range of options and will provide more information to investors in January.
The asset management unit is part of Wells Fargo’s wealth and investment management division, offering mutual funds and retirement products.
Sources told Reuters the group is planning to keep its wealth management business, which caters to high-net worth clients.
Wells Fargo’s share price has declined 57.5 per cent in the year to date to USD 23.25 yesterday, valuing the business at USD 95.79 billion.
The group had total assets under management of USD 607.00 billion at 30th September 2020, up 21.0 per cent year-on-year, primarily driven by money market fund net inflows and higher market valuations and partially offset by equity net outflows.
According to Zephyr, the M&A database published by Bureau van Dijk, there have been 3,110 deals targeting securities, commodity contracts and other financial investment and related activities providers announced worldwide in 2020 to date.
In the largest of these, PNC Bancorp sold a minority stake in BlackRock in a deal worth USD 13.28 billion.
Other targets included Eaton Vance, Legg Mason, London Stock Exchange Group Holdings Italia and Duff & Phelps.
© Zephus Ltd