Updated February 26th, 2024 at 09:33 IST

Ant Group beats Citadel for Credit Suisse's China unit

Ant Group, an affiliate of Alibaba Group, aims to establish a securities business in China utilising Credit Suisse's operations.

Reported by: Business Desk
Ant Group | Image:Ant Group
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Ant Group beats Citadel: Fintech behemoth Ant Group has reportedly outbid Citadel Securities, owned by billionaire Ken Griffin, for Credit Suisse's investment bank venture in China, according to Bloomberg News.

The success of Ant Group's offer remains uncertain as it faces thorough scrutiny from Chinese regulators, who typically favour foreign buyers.

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Ant Group, an affiliate of Alibaba Group, aims to establish a securities business in China utilising Credit Suisse's operations. 

However, UBS, the current owner of Credit Suisse, now faces a dilemma between choosing Ant's higher local bid and Citadel's lower bid, which is more likely to receive government approval.

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While Ant Group declined to comment, the company has been collaborating with Chinese regulators to transition into a financial holding company to ensure regulatory compliance. 

Both UBS and Citadel have yet to respond to requests for comment from Reuters.

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The bidding for Credit Suisse's China securities operation coincides with challenges in the domestic A-share market, including an outflow of foreign capital and heightened scrutiny on IPOs amid China's economic slowdown.

UBS' acquisition of Credit Suisse, orchestrated by Swiss authorities last year to prevent Credit Suisse's collapse, resulted in UBS owning two majority-owned securities firms in China. 

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The sale of Credit Suisse Securities China, previously held 51 per cent by Credit Suisse and 49 per cent by Founder Securities, awaits regulatory approval.

UBS, amid its expansion in China, is reportedly planning headcount reductions in the coming months as it absorbs Credit Suisse's workforce.

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(With Reuters Inputs)

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Published February 26th, 2024 at 09:33 IST