StanChart to seek new buyer for MF business
UBS had agreed to buy StanChart's MF business for $118 mn but with the Sale and Purchase Agreement expiring, the two sides decided to end negotiations. Biz Humour
By PTI |
MUMBAI: Foreign bank Standard Chartered on Friday said it will seek new buyers for its mutual fund business in India after global financial major UBS failed to secure "certain regulatory approvals."
"Standard Chartered will now seek a new buyer by re-initiating the tender process," the bank said here in a statement.
"The Sale and Purchase Agreement that was signed with UBS in January 2007 was conditional upon UBS securing certain regulatory approvals which have not been granted," it said.
UBS had agreed to buy StanChart's MF management business for $118 million but with the Sale and Purchase Agreement expiring, the two sides decided to end negotiations in this regard, UBS had said in a statement from its Hong Kong office.
"Standard Chartered will now seek a new buyer by re-initiating the tender process," the bank said here in a statement.
"The Sale and Purchase Agreement that was signed with UBS in January 2007 was conditional upon UBS securing certain regulatory approvals which have not been granted," it said.
UBS had agreed to buy StanChart's MF management business for $118 million but with the Sale and Purchase Agreement expiring, the two sides decided to end negotiations in this regard, UBS had said in a statement from its Hong Kong office.
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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.
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