UBS Group is reportedly planning to increase its stake in its Chinese securities joint venture (JV) UBS Securities.
This comes after two local partners Guangdong Provincial Communication Group and China Energy Investment decided to auction their entire individual stakes in the JV, Reuters reported citing filings on the China Beijing Equity Exchanges.
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Currently, the two partners own 14.01% and 1.99% interest in the JV, respectively.
The exchange, however, did not name the potential bidders.
If the deal with UBS is finalised, the Swiss wealth manager’s stake in the securities JV will increase to 67%.
In an emailed statement to the news agency, UBS said: “China is a key market for UBS. The further opening up of China’s financial sector represents great opportunities for all of our China businesses, including wealth and asset management, and investment bank.
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By GlobalData“We are committed to the China market and will continue to invest strategically. Our further stake interest in UBS Securities demonstrates such commitment.”
Notably, several foreign banks are eyeing to take majority control of their businesses on Chinese mainland after the government allowed foreign businesses to acquire larger stakes in their joint ventures.
Goldman Sachs seeks to acquire complete ownership of its operations, while JPMorgan holds 71% stake in its operations.
In January, UBS posted a 137% year-on-year growth in Q4 2020 profit.
