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.