Credit Suisse Looking To Sell Its China Securities Brokerage Business Due To UBS Takeover: Report

Credit Suisse Group AG CS and its joint venture partner are looking for buyers for its loss-making China Securities brokerage business.

At one point, Citigroup Inc C showed interest in buying Credit Suisse Securities China (CSS), Reuters reported.

The decision reflects CS's takeover by UBS Group AG UBS.

Notably, as per Chinese Securities regulations, one entity cannot hold two licenses for majority-owned brokerages.

CS currently owns 51% of CSS and had penned an agreement to buy Founder Securities last year, with the deal presently pending Chinese authority approval.

Also, UBS owns 67% of a securities joint venture with state-owned asset management in Beijing.

Last week, UBS disclosed that it expects to conclude the acquisition of Credit Suisse as early as June 12, 2023.

Price Action: CS shares are trading lower by 0.13% at $0.8760 premarket on the last check on Friday.