UBS picks Chinese state fund over Ken Griffin’s Citadel Securities for Credit Suisse unit

UBS Group has agreed to sell the majority of its stake in Credit Suisse’s China venture to a Beijing-backed fund, dealing a blow to the ambitions of Ken Griffin’s Citadel Securities to expand in the world’s second-largest economy.

Under the deal, which values the money-losing business at US$253.4 million, the Swiss lender will sell a 36.01 per cent holding in Credit Suisse Securities (China) for US$91.4 million to Beijing State-owned Assets Management Co. Founder Securities will dispose of its entire 49 per cent stake in the venture for US$124 million.

Source: TRADE FINANCE