The asset management units of Deutsche Bank and Swiss bank UBS Group are in “serious” merger talks, the Financial Times reported on Tuesday, citing people familiar with the discussions.

If the deal is concluded, the combined business would have around $1.57 trillion of assets under management.

The report said that one structure under consideration is for UBS to hive off its asset management unit, which oversees €700 billion, and fold it into Deutsche’s DWS in exchange for shares in the larger group.

DWS, 79% owned by Deutsche, has €662 billion of assets under management. The German bank would remain the company’s top shareholder but its interest would be diluted.

Bloomberg reported earlier this month that UBS was evaluating options for its asset management business, including a partial sale or merger of the business. 

UBS, Deutsche Bank and DWS declined to comment.