UBS to Acquire Unit of Canada’s Royal Bank

Swiss bank UBS said it plans to buy the pension management arm of Royal Bank of Canada for about $230 million in a further expansion of its North American reach. The deal is tiny compared with UBS’ $11.8-billion acquisition of U.S. broker PaineWebber last year. However, it underscores intentions by the Swiss giant--which has funds under management greater than Canada’s GDP--to further reinforce its already impressive bulk in the fast-growing wealth management business.

UBS said the acquisition would be incorporated into its asset management activities, which include Brinson, the Chicago-based institutional fund manager UBS bought in 1995.