Friday, December 28, 2007

UBS cancels StanChart`s India MF biz buyout

Global financial major UBS said that it will not proceed with the planned acquisition of Standard Chartered Bank`s mutual fund business in India.

UBS had agreed to buy StanChart`s MF management business for USD 118 million in January this year. But with the Sale and Purchase Agreement expiring, the two sides decided to end negotiations in this regard.

UBS has however underlined that the strategic alliance between the two companies for fund distribution in Asia, which was announced at the same time as the planned acquisition, would remain unaffected. The failure of the proposed deal would have negligible costs and would not impact UBS` earnings.

UBS said that it will remain committed to India and Asia Pacific. It will continue to provide its clients in India with market-leading equity brokerage and advisory services via UBS India Securities Private.

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