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UBS Group AG said Tuesday that it well sell a majority stake in UBS Fondcenter to Clearstream, the post-trade services provider of Deutsche Boerse AG DB1, +0.44%.
The Swiss bank UBS, -0.45% UBSG, +0.55% said that it expects to make an after-tax gain of $600 million–and recognize a CET1 capital increase of about $400 million–from the deal, which it expects to close in the second half of this year.
Fondcenter, a part of the bank’s asset-management division, will be combined with Clearstream’s Fund Desk unit. UBS will retain a 48.8% interest in the merged business, with the option to sell its remaining stake later.
The combined business will have $230 billion in assets under management. Under the terms of the deal, UBS and Clearstream will also enter into a long-term agreement to use the Swiss lender’s global wealth management and asset management business divisions, and the corporate and institutional clients unit of personal and corporate banking.
