Bulletin
Investor Alert

New York Markets Close in:

Dow Jones Newswires Archives | Email alerts

Jan. 21, 2020, 1:44 a.m. EST

UBS sells majority stake in Fondcenter to Deutsche Boerse’s Clearstream

new
Watchlist Relevance
LEARN MORE

Want to see how this story relates to your watchlist?

Just add items to create a watchlist now:

  • X
    Deutsche Boerse AG (DB1)
  • X
    UBS Group AG (UBS)
  • X
    UBS Group AG (UBSG)

or Cancel Already have a watchlist? Log In

By Carlo Martuscelli

UBS Group AG said Tuesday that it well sell a majority stake in UBS Fondcenter to Clearstream, the post-trade services provider of Deutsche Boerse AG /zigman2/quotes/205502669/delayed DE:DB1 -1.61% .

The Swiss bank /zigman2/quotes/206172872/composite UBS +1.44%   /zigman2/quotes/206994749/delayed CH:UBSG +0.96%  said that it expects to make an after-tax gain of $600 million--and recognize a CET1 capital increase of about $400 million--from the deal, which it expects to close in the second half of this year.

Fondcenter, a part of the bank’s asset-management division, will be combined with Clearstream’s Fund Desk unit. UBS will retain a 48.8% interest in the merged business, with the option to sell its remaining stake later.

The combined business will have $230 billion in assets under management. Under the terms of the deal, UBS and Clearstream will also enter into a long-term agreement to use the Swiss lender’s global wealth management and asset management business divisions, and the corporate and institutional clients unit of personal and corporate banking.

/zigman2/quotes/205502669/delayed
DE : Germany: Frankfurt
155.80
-2.55 -1.61%
Volume: 160.00
Aug. 4, 2020 4:01p
P/E Ratio
N/A
Dividend Yield
N/A
Market Cap
N/A
Rev. per Employee
€555,390
loading...
/zigman2/quotes/206172872/composite
US : U.S.: NYSE
$ 12.01
+0.17 +1.44%
Volume: 1.37M
Aug. 4, 2020 1:42p
P/E Ratio
9.72
Dividend Yield
1.52%
Market Cap
$42.42 billion
Rev. per Employee
$703,264
loading...
/zigman2/quotes/206994749/delayed
CH : Switzerland: SWX
CHF 11.00
+0.11 +0.96%
Volume: 11.29M
Aug. 4, 2020 5:31p
P/E Ratio
9.15
Dividend Yield
0.00%
Market Cap
CHF39.08 billion
Rev. per Employee
CHF688,257
loading...

Get news alerts on UBS Group AG — or create your own.
This Story has 0 Comments
Be the first to comment
More News In
Industries

Story Conversation

Commenting FAQs »
Link to MarketWatch's Slice.