New Delhi: Global financial major UBS on 28 December said 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 $118.2 million (Rs467 crore) in January this year. But with the sale and purchase agreement expiring, the two sides decided to end negotiations in this regard, UBS 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 said in a statement from its regional office in Hong Kong.
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. The failure of the proposed deal would have negligible costs and would not impact UBS’ earnings.
UBS said it remains 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 Ltd,” it noted.