Baker McKenzie advised UBS in all legal, regulatory and competition law aspects of the transaction
UBS has agreed to sell a majority stake (51.2%) in UBS Fondcenter ('Fondcenter'), its B2B fund distribution platform, and part of its Asset Management business division, to Clearstream, Deutsche Börse Group's post-trade services provider. UBS will initially retain a minority (48.8%) shareholding in the combined business and will enter into an agreement under which it may sell its remaining shareholding to Clearstream at a later time. The transaction is subject to customary closing conditions and is expected to close in the second half of 2020. Upon closing, UBS expects to recognize a post-tax gain of approximately USD 600 million.
The newly combined business, to be called Fondcenter, will have over USD 230 billion in AuA and connect approximately 340 distribution partners with more than 450 fund providers, with over 75,000 investment funds and share classes available globally. As part of the transaction, UBS and Clearstream will enter into long-term commercial cooperation arrangements for the provision of services to UBS's Global Wealth Management and Asset Management business divisions and the Corporate and Institutional Clients unit of Personal & Corporate Banking. The employees of Fondcenter will transfer to Clearstream as part of the sale and the management team will take senior positions within the combined business, providing continuity for clients and fund providers.
The Baker McKenzie team was led by Pascal Richard, Petra Hanselmann (both M&A), Ansgar Schott (Regulatory) and Boris Wenger (Competition Law) and further comprised, amongst others, Ramon Tissafi (M&A), Philippe Monnier (Employment), Julia Schieber (IP), Markus Winkler and Tanja Schmid (both Regulatory).