UBS In Talks To Swap Credit Suisse Stake For Full Ownership Of China Unit : Report

(RTTNews) - UBS Group AG is in discussions to acquire full ownership of its China platform by exchanging its stake in Credit Suisse's onshore securities venture with a Beijing government investment fund, Bloomberg reported citing people familiar with the matter.

The proposed deal involves UBS buying the remaining 33% stake in UBS Securities Co. from Beijing State-Owned Assets Management Co. and selling its entire 51% position in Credit Suisse Securities (China).

Chinese regulations prohibit a foreign shareholder from holding majority stakes in two domestic brokerages simultaneously, prompting UBS to seek full ownership of its own securities venture.

Despite previous attempts by UBS to increase its ownership to 100%, the Beijing government has hesitated to sell due to the promising growth and earnings potential of the onshore business.