UBS to Acquire 4.9% Stake in 360 ONE: CCI Approval Sought

New Delhi, May 26 (PTI) Multinational investment bank UBS AG has sought fair trade regulator CCI's approval to acquire a 4.95 per cent stake purchase in domestic wealth management firm 360 ONE WAM (360 ONE).

"360 OWL (360 ONE WAM Ltd) shall issue and allot to UBS AG on a preferential allotment basis, and UBS AG shall subscribe to, 2,05,02,939 subscription warrants of 360 OWL (ie, up to 4.95 per cent of the paid-up share capital of 360 OWL), as per the terms set out in the securities subscription agreement executed between UBS AG and 360 OWL," a notice filed with the CCI said on May 22.

The proposed transaction also involves the transfer of Credit Suisse Securities (India) wealth management and stock broking businesses to 360 ONE entities.

Credit Suisse Securities (India) is a step-down wholly-owned subsidiary of UBS AG.

The portfolio management services business of Credit Suisse will be transferred to 360 ONE Portfolio Managers, while stock broking and financial product distribution operations will be handed over to 360 ONE Distribution Services. Both transfers will take place as going concerns on a slump sale basis.

In addition, UBS Finance India will transfer and assign its entire loan portfolio part of its lending and financing business undertaken as a systematically important non-deposit taking non-banking financial company to 360 Prime under a separate agreement.

The proposed transaction also includes a collaboration arrangement between UBS AG and 360 OWL through a term sheet under which both entities will work together to offer wealth management solutions available to domestic and global clients.

UBS has submitted that the proposed transaction does not have any impact on the market dynamics in India, let alone cause an appreciable adverse effect on competition in any plausible relevant markets in India.

The global asset manager UBS also said it has delineated certain relevant markets to assist the CCI's assessment. These include portfolio management, stock broking, and mutual fund distribution, among others.

In April, UBS announced that it had entered into an exclusive strategic collaboration with 360 ONE WAM Ltd (360 ONE).

As part of the collaboration, UBS will transfer its onshore wealth management business in India to 360 ONE.

Further, UBS will acquire warrants for a 4.95 per cent stake in 360 ONE.

The Competition watchdog's approval is awaited before the transaction can proceed to completion.