UBS (France) SA agreed to acquire Banca Leonardo SpA's French private banking unit Banque Leonardo SA, Reuters reported Dec. 22.

The UBS Group AG subsidiary will also establish a wealth management firm, to be called "La Maison de Gestion," with Banque Leonardo executives as part of the deal, according to the report. The firm will be majority-owned by UBS (France), with La Maison de Gestion and its shareholders getting the remainder. The joint venture will hold about €4 billion of AUM.

The deal, terms of which were not disclosed, will increase UBS (France)'s AUM to €13 billion from €11 billion, Reuters said, citing an interview in Les Echos with UBS (France) Chairman Jean-Frédéric de Leusse.

Banca Leonardo said the deal would allow it to focus on its core private banking market in Italy, Reuters noted.