UBS Group AG is reportedly negotiating to gain full control of its China operation by trading its share in Credit Suisse's domestic securities enterprise with a Beijing-based government investment fund, according to individuals in the know.
The suggested transaction would entail UBS purchasing the remaining 33% stake in UBS Securities Co. from Beijing State-Owned Assets Management Co. Further, it would also involve selling its complete 51% stake in Credit Suisse Securities (China).
Due to Chinese regulations barring a foreign investor from concurrently owning majority shares in two domestic brokerages, UBS is compelled to strive for complete ownership of its securities venture.
Although UBS has previously made attempts to expand its shareholding to 100%, the Beijing government has exhibited reluctance to sell, given the projected growth and potential profitability of the domestic business.
