Swiss financial giant UBS is reported as selling off a stake in a Chinese joint venture to Beijing State-owned Asset Management (BSAM) as part of the fallout from its merger with Credit Suisse.
As reported last week in Investment International, Swiss regulator FINMA concluded its investigation into the merger 'without conditions or obligations' and suggested that competition would not be hurt.
However, China puts limits on entities majority owning more than one local securities firm. UBS already had one majority owned joint venture while the merger with CS gave it another.
UBS is therefore reportedly offloading a 36.01% stake in what was the CS joint venture to BSAM for some $91.4m equivalent. The other partner in this venture, Founder Securities, is offloading its 49% stake for some $122m equivalent.
BSAM is reported as the partner in UBS' other joint venture, UBS Securities, in which it has a majority share, and which it had in place before the CS merger occurred.
It is reported by Reuters that BSAM outbid Citadel Securities to obtain the stake.
