UBS Calls Off Standard Chartered AMC Deal It Struck A Year Ago
UBS Global Asset Management has called off its plans to acquire Standard Chartered Bank’s mutual funds management business in India after the sale and purchase agreement expired.
In a statement issued today, UBS has said: “Following the expiry of the Sale and Purchase Agreement that they executed in January 2007, UBS and Standard Chartered Bank have decided not to continue negotiations regarding the acquisition by UBS of the Standard Chartered mutual funds management business in India.” UBS had agreed with Stanchart to acquire the latter’s mutual fund business in India for $118 million. Although UBS did not mention the reason, it’s probably that Reserve Bank of India did not give its approval to UBS for the deal. The Swiss firm however, said a strategic alliance between the two companies for fund distribution in Asia, announced at the same time as the planned acquisition, would remain unaffected.
Meanwhile, The Economic Times reports that StanChart is in talks with other global players for selling the AMC business. They include Credit Suisse, Morgan Stanley, Goldman, Lotus and Aviva.
