UBS drops SCB bid

After almost a year of on and off negotiations, UBS Global Asset Management will not acquire the mutual funds management business of Standard Chartered Bank in India.

Both parties entered into a sale and purchase agreement in January 2007.

“A strategic alliance between UBS and Standard Chartered for fund distribution in Asia which was announced at the same time as the planned acquistion, was established in April 2007 and is unaffected,” it said in a press statement.

It added that any costs accruing to UBS through abandonement of the planned transaction will be negligible and will have no material impact on UBS’s earnings.

UBS nonetheless stated that it remains committed to the Indian market and Asia Pacific more broadly. It will continue to provide its clients in India with market-leading equity brokerage and advisory services via UBS India Securities Private Ltd.

It is a major global financial and wealth manager, a top tier investment banking and securities firm, and one of the largest global asset managers. In Switzerland, UBS is the market leader in retail and commercial banking.