An investment agreement has been established between the ATRAM Group and Union Bank of the Philippines (UnionBank). Following the completion of the transaction, existing ATRAM shareholders will retain a 72.5% ownership stake in the company, while UnionBank will hold the remaining 27.5%.

This acquisition will facilitate a merger between Union Bank Investment Management and Trust Corporation (UBIMTC) and ATRAM Trust Corporation (ATC), both subsidiaries of Trust Corp. ATC will be the surviving entity.

The primary objective of this merger is to integrate the strengths of both organizations, thereby creating a robust platform for growth and innovation within the asset and wealth management sector.

Recent data indicates that the merger will establish a significant player in the trust industry, with combined assets under management (AUM) totaling approximately Php485 billion ($8.2 billion), significantly enhancing operational scale and capabilities.

Additionally, the collaboration aims to offer clients a diverse range of high-quality financial products by merging ATRAM’s innovative asset management solutions with UnionBank’s digital proficiency.

UnionBank serves over 15 million retail customers, while ATRAM has transformed investing by providing access to over 2 million retail investors through its partnerships and digital platforms.

Edwin R. Bautista, President and CEO of UnionBank, remarked: “This collaboration enables us to enhance our offerings and deliver even more customized services to our clients, particularly our larger Wealth clientele, following the acquisition of Citibank Philippines’ consumer banking operations. We are dedicated to ensuring they have access to the finest financial solutions while also expanding career opportunities for our employees within a larger and more dynamic organization.”

Michael V. Ferrer, Chief Executive Officer of ATRAM, stated: “This merger marks a significant achievement for ATRAM as we partner with UnionBank, a frontrunner in digital innovation. Together, we will transform the asset management sector in the Philippines. Our clients will gain access to a broader range of investment solutions, thereby enhancing the value and quality of service we provide.”

To ensure a seamless integration that prioritizes customer service and employee welfare, the investment and merger will require regulatory approvals and undergo a comprehensive evaluation process. UnionBank was advised on financial matters by Exchange Equity Partners, while ATRAM received guidance from AlphaPrimus Advisors.