UBS takes 5.17% almond stake as €6B flows out of US wealth arm
What's the deal? UBSDealroom has a profile for this one. Try Dealroom → has taken a 5.17% voting stake in Select HarvestsDealroom has a profile for this one. Try Dealroom →, an Australian almond producer, acquiring roughly 7.3 million ordinary shares. The Swiss bank executed the purchase on July 9 through entities in Australia and London.
What's the endgame? The move marks a push into global food supply chains, tapping demand for sustainable agriculture. For Select Harvests, a deep-pocketed institutional backer could support operational efficiencies and growth plans.
Why now? The agribusiness foray comes as UBS shares trade near a record high. The stock closed at €45.67, just 0.37% below its July 6 peak of €45.84, and has risen 49.30% over the past year. Its market capitalisation stands at roughly €149 billion.
What could go wrong? The core wealth management business is leaking. UBS's US arm has suffered €6 billion in net outflows in 2026, and clients pulled a further $3 billion from the Blue Owl Technology Income Fund in the fourth quarter of last year. Some advisors, reportedly unhappy with compensation, are leaving for competitors and taking client books with them.
UBS is responding with an initiative called "AI Power Hour," aimed at giving wealth clients AI-driven analytical tools to stabilise assets and improve margins. Whether that offsets departing advisors is the central question for chief executive officer Sergio Ermotti.
Analysts are cautious but not bearish. A consensus of one "Hold" and one "Sell" rating sets an average price target of €52.20, implying a 14.3% gain. The stock trades 22.97% above its 200-day moving average, though a relative strength index of 66.1 is nearing overbought territory.
The signal: A bank trading near record highs is diversifying into farmland even as its flagship division loses money and talent. The Bank for International SettlementsDealroom has a profile for this one. Try Dealroom → has urged caution on capital requirements for systemically important banks — a warning that could constrain returns if supervisors tighten the screws.
Read more: ad-hoc-news.de
Image credit: HealthAliciousNess
