UBS Group AG is evaluating options for its asset management unit, including a partial sale or merger of the business, according to people with knowledge of the matter.

The Swiss wealth manager has considered seeking to acquire Deutsche Bank AG’s DWS Group asset manager, potentially to combine it with its own business and spin off the two as a separate entity, the people said, asking not to be identified because the matter is private. UBS may still keep the unit unchanged and discussions may not lead to a deal, they said.

The bank’s board is considering acquisitions and other ways to grow the asset management business -- which manages about $800 billion -- to ensure its long-term survival and fight off competition from U.S. rivals. The company has been assessing the market for at least a year, as dealmaking picks up across the industry, according to the people.

UBS shares extended gains on the news, rising as much as 1.9 percent to 12.48 francs in Zurich. DWS shares also rose, gaining as much as 3.7 percent at the same time in Frankfurt.

A representative of UBS declined to comment.

Building scale has become essential for asset managers across Europe amid sustained pressure from larger, more technologically advanced U.S. rivals that can charge less.

Standard Life Plc and Aberdeen Asset Management Plc merged in 2017, but that didn’t prevent a wave of client redemptions. Allianz SE is exploring a possible combination of DWS with its own asset manager, sources said last month. DWS suffered more than 22 billion euros ($25 billion) of redemptions last year.

While asset management is the smallest division of UBS, its a dependable contributor to profit that doesn’t require as much capital as the Swiss bank’s investment banking operations or lending to high-net-worth clients. Still, net management fees have declined in each of the last three years.

Some UBS managers want to spin off the unit, which is partly dependent on flows from the $2.3 trillion that the bank manages for wealthy individuals. Others don’t want to change a business that provides stable returns and is growing assets. A key issue in any tie up will be which company retains the majority of the combined company.