Deutsche Boerse buys remaining stake in CFC from UBS for 390 million Sfr – Reuters.com


ZURICH/BERLIN (Reuters) – Germanys Deutsche Boerse consented to buy the staying 49% stake in fund circulation platform Clearstream Fund Centre (CFC) from UBS Group for 390 million Swiss francs ($ 427 million), the 2 companies said on Thursday.Deutsche Boerse, which had bought 51% of CFC in 2015, said the deal would complement previous offers in the mutual fund market, with the acquisitions of Citco Global Securities Services, Swisscanto Funds Centre and Ausmaq.” We see considerable opportunities to additional grow the worldwide footprint of this (CFC) business, especially in Europe but also in Asia Pacific,” Deutsche Boerse board member Stephan Leithner said in a statement.Deutsche Boerse anticipates the deal to result in a low to medium double-digit million euro book gain.UBS anticipates to recognise a post-tax gain of around $35 million and a CET1 capital boost of around $400 million in the 2nd quarter.The deal goes through certain closing conditions and is anticipated to complete in June, it said.Reporting by Michael Shields and Maria Sheahan; Editing by John Revill and Caroline Copley