Julius Baer has acquired a 19.9 per cent stake in Kairos Investment Management, after having reached a transaction agreement with the Milan-based firm on 31 May.

The combined business in Italy will operate under the name Kairos Julius Baer SIM, and during the integration phase it will apply for a banking licence to the Bank of Italy in order to set up a new private bank in the country.

“Since November, both partners have closely and successfully collaborated to reach this important milestone. Now we look forward to jointly developing a truly dedicated wealth management business which will significantly strengthen our long-term position in Italy,” said Boris Collardi, chief executive of Julius Baer.

In other recent developments, at the start of this week Julius Baer completed the legal merger of Geneva-based Merrill Lynch (Suisse) and its branches in Zurich and Dubai, in a move adding SFr11 billion ($11.5 billion) in assets under management.

Julius Baer has SFr220 billion assets under management, as at 30 April 2013.