Media reports allege it outbid Citadel while also characterizing the move as surprising.
Ant Group may potentially be scooping up Credit Suisse’s investment banking business in China from right under the nose of Citadel, a news report on «Bloomberg» (behind paywall) published on Monday indicates.
The article cited people familiar with the matter and said that the move was a surprising one, albeit one that would be subject to close regulatory scrutiny.
Foreign Buyer Favored
According to «Bloomberg», authorities in China are likely to review the transaction as the country favors a foreign buyer as the original license had been given to help open the country’s financial sector internationally.
The information service further indicated that it would pose a dilemma for UBS, Switzerland’s largest bank, which is currently in the process of integrating Credit Suisse following a government-prompted rescue action almost a year ago.
Citadel or Ant
It will now have to choose between a higher bid from Ant or the Citadel bid that authorities are more likely to approve.
UBS and Ant representatives did not comment on the matter, Bloomberg said.
Little Sense
A Breakingviews piece (behind paywall), also published on Tuesday, indicated that such a deal «makes little sense» although it indicates that the company is potentially again in good standing with the government in Beijing.
According to the service, UBS is having difficulties selling the business because of geopolitical tensions, Beijing’s regulatory clampdown in recent years, slow economic growth, and the sharp declines seen in the country’s equity markets.
