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Swiss investment banking group UBS has agreed to sell its domestic banking unit and wealth management business in Spain to Madrid-based Singular Bank.

Singular Bank is purchasing the unit for an amount between €200m and €250m, according to a report by German newspaper Handelsblatt.

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The transaction is expected to be finalised in the third quarter of next year, subject to regulatory approvals.

Under the terms of the agreement, Singular Bank will acquire all employees, client relationships, products, and services of UBS Spain’s domestic wealth management business.

UBS will retain its asset management and investment banking businesses in Spain.

UBS Europe CEO Christl Novakovic said that the transaction will form a ‘unique value proposition for employees and clients’ while positioning the business for future growth opportunities.

As part of the deal, both parties have signed a strategic alliance to offer clients access to products and services provided by all UBS divisions.

The acquisition is expected to poise Singular Bank largest independent private bank in the Spanish market with €20bn in assets and 11 offices.

Singular Bank CEO Javier Marín commented: “We are excited and proud of this operation, which represents a milestone in the transformation of the sector in Spain, creating the leading independent private bank, with first-rate human and technological capital.”

Earlier this year, Bloomberg reported that UBS was considering options including divestiture or exit for its Spanish unit as part of the group’s review under CEO Ralph Hamers.

The move was said to be part of Hamer’s focus on growing local partnerships in small offshore markets instead of maintaining a domestic footprint.

Last December, the bank offloaded its domestic wealth management business in Austria to Liechenstein-based private bank LGT.

Recently, Reuters reported that UBS was moving to shut down its brokerage in Mexico, which is considered to be Latin America’s second largest economy.