UBS and Founder Securities have agreed to sell a combined 85.01% stake in Credit Suisse Securities ( China ) Limited ( CSS ) to Beijing State-owned Assets Management ( BSAM ), following a comprehensive and competitive process.

The transaction includes the sale of UBS’s 36.01% stake in CSS for US$91.4 million and the sale of Founder Securities’ 49% interest for US$124 million. The completion of the transaction is subject to the necessary regulatory approvals and customary closing conditions.

Following the completion of the transaction, BSAM will hold an 85.01% stake in CSS while UBS will hold the remaining 14.99%.

In 2008 Credit Suisse and Founder Securities formed CSS as a securities joint venture in China. Since June 2020, Credit Suisse has held a 51% shareholding of the joint venture, with Founder Securities owning the remaining stake. Credit Suisse has been part of the UBS group since June 2023, with the merger having been completed on May 31 2024.

Commenting on the latest deal, Sergio Ermotti, group chief executive officer of UBS, says: “China is a key market for UBS. Our acquisition of Credit Suisse means a bigger presence for us there. However, we have a comprehensive onshore multi-entity set-up across the two firms with specific regulatory requirements to comply with.

“So, it is optimal for us to sell the 36.01% stake in CSS to our key long-term business partner with whom we have worked closely for almost 20 years to develop our business in China. We have had a longstanding presence on the mainland for 35 years and we will continue to expand in this important market.”

According to BSAM, its decision to acquire UBS’s stake in CSS marks a furthering of its collaboration with the Swiss bank. “This also demonstrates a solid measure that answers to the country and Beijing’s relevant requirements for the financial industry to support the real economy,” the Chinese firm adds.

BSAM is a sovereign wealth fund owned by the Beijing Municipal People's Government. It was established in April 2001 following the reform of Beijing's state-owned asset management system. The enterprise’s main function is to manage and operate state-owned assets to ensure the preservation and enhancement of its value during operation