The Indian Central Bank has refused to sanction UBS’s purchase of Standard Chartered’s local mutual funds unit. The Indian Central Bank revealed that they didn’t see UBS as a ‘fit and proper’ owner of the business, and as a result of their refusal, the £60 million deal has been called off.
The main reason behind the Indian Central Bank’s scepticism of UBS’s credentials is believed to be their exposure to the credit crisis. UBS has been one of the worst affected investment banks by the credit crisis, having written off around £7 billion.
The deal would have seen UBS expand their operations in India, incorporating Standard’s local mutual funds unit which is responsible for nearly £2 billion of assets. Standard Chartered have put the unit straight back up for sale, with the likes of Morgan Stanley and Goldman Sachs believed to be in talks with Standard.
UBS Shunned by Indian Central Bank
UBS Shunned by Indian Central Bank
Thu, 03 Jan 2008
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