Switzerland's UBS Group to buy majority stake in China operations

Swiss financial services company UBS Group (UBS) plans to hold majority ownership of its Chinese investment banking operations, UBS Securities, after two of its joint venture (JV) partners, investment management firm China Guodian Capital and agribusiness to food processing company China National Cereals, Oils and Foodstuffs Corporation (COFCO Group), said they had put their stakes up for sale.

UBS would own 51 percent of its joint venture if it purchases the holdings. That would make it the investment bank to secure majority ownership since a decision by China late last year to open the sector to foreign control.

COFCO Group said in a statement that it would sell its 14 percent stake in UBS Securities for at least 461.72 million yuan ($66.77 million).

In a separate statement, China Guodian Capital said it would sell a 12.01 percent stake in the joint venture for at least 396.09 million yuan ($57.30 million).