Negotiation is key as UBS heads for China JV majority stake
UBS’s path to China JV control raises questions for others.
Z-Ben, the impeccably connected China-based research house, reported in October that UBS is to succeed in its move to a 51% stake in its Chinese securities joint venture (JV), UBS Securities.
UBS hasn’t confirmed it, but if Z-Ben is correct, UBS will acquire a further 26% stake in its JV through public auction, from the 24.99% it holds now, and could be a majority shareholder by November 8.
Z-Ben’s take on this is an interesting one: that, contrary to popular belief, China is not restricting deals, and that the biggest challenge is instead foreign banks reaching agreement with their local counterparts.