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UBS and Bank of China (BOC) is to enter a mutually beneficial strategic cooperation relationship covering the development of investment banking and securities products and services in China and for Chinese clients. UBS Investment Bank will invest US$500mn in BOC.
The cooperation agreement and investment cement the long-standing relationship between Bank of China and UBS. The two parties have agreed to be preferred partners in various investment banking and related securities business areas in China and for Chinese clients. In addition, the two parties will cooperate in operational matters relating to these business areas.
Commenting on the transaction, UBS CEO, Peter Wuffli, says: “We regard this agreement as a natural development of our long-term relationship with Bank of China. The combination of Bank of China’s brand, distribution and customer base with UBS’s products, services and experience will be powerful.”
The transaction is subject to regulatory approvals in China.
The investment is part of UBS’s strategic approach of pursuing a number of ventures in the China markets aiming to capture growth potential.