May 24 (Reuters) - Switzerland's private banking group

Julius Baer is exploring a potential acquisition of

rival EFG International, Bloomberg News reported on

Friday, citing people familiar with the matter.

There is no certainty that the talks between the two

companies will result in a transaction, the report said.

Swiss private bank EFG International has a market valuation

of more than $4 billion, according to LSEG data.

Julius Baer and EFG International declined to comment on the

report.

A deal between the two Swiss banks could create a wealth

manager with more than 500 billion Swiss francs ($547.11

billion) in assets under management, according to the Bloomberg

report.

Switzerland's financial regulator, FINMA, launched an

investigation into Julius Baer over its risk controls, Bloomberg

reported in December last year. The investigation could

complicate large transactions.

EFG, which had assets under management of 142.2 billion

francs at the end of 2023, told analysts in February that it has

been looking for meaningful acquisitions given its significant

excess capital.

($1 = 0.9139 Swiss francs)