UBS will sell its Indian onshore wealth business to asset manager 360 ONE in a deal valued at 3.07 billion rupees ($36 million), while taking a nearly 5% stake in the Mumbai-based company.
360 ONE will buy UBS’ local stock broking and distribution business, discretionary and non-discretionary portfolio management services business, and residual loan portfolio, the Indian company said in a statement on Tuesday.
UBS said in a separate statement it would acquire warrants for a 4.95% stake in 360 ONE worth about Rs 1,900 crore ($223 million) based on Monday’s close. It said it would also take over serving 360 ONE’s clients in Singapore, subject to regulatory approvals.
This deal will see UBS relinquish equity control in its India onshore wealth business while taking up offshore wealth business of its local partner. UBS had exited the Indian onshore wealth business more than a decade ago but returned as part of its global acquisition of Credit Suisse in 2023.
360 ONE’s ability to offer global wealth solution to its Indian client base apart from offering domestic solutions to UBS’ large global client base, especially institutional clients, “is likely to drive significant edge over competitors”, analysts at Citi said in a research note.
Shares of 360 ONE were up 1.1% on Tuesday as of 0520 GMT.
Asia wealth partnerships
Despite the increasing number of wealthy individuals in India, one of the fastest-growing economies, foreign private banks have struggled to boost revenues in the country due to stiff competition with deeply entrenched local players and regulatory limitations, leading many to exit the market.
UBS’ wealth partnership model in India contrasts with its effort to expand in other Asian wealth markets in recent years.
In 2019, it signed a deal with Sumitomo Mitsui Trust in Japan to create a venture, majority-owned by UBS, expanding services for their wealthy and ultra-wealthy clients. In March this year, UBS acquired full ownership of a securities joint venture in China where it serves wealth clients.
Under the UBS-360 ONE deal, clients from both firms will have access to onshore and offshore wealth management solutions, 360 ONE said. The companies will also explore potential opportunities for collaboration on asset management products and investment banking services, it added.
360 ONE provides investment and financial advice to more than 7,500 wealthy and ultra wealthy families in India, with $68 billion assets under management, it said in its statement.
Apart from the Credit Suisse unit, UBS runs trading, global banking and asset management business in India, in addition to several large service centres across the country.
Reuters
