According to a report by Bloomberg News on Sunday, the Chinese company Ant Group, a fintech behemoth, has outbid billionaire Ken Griffin’s Citadel Securities for Credit Suisse’s investment bank venture in China. However, it is uncertain if Ant Group’s offer would be accepted.
Higher Local Bid
According to a report citing people familiar with the subject, Beijing favors a foreign buyer, therefore Ant Group’s bid to establish a securities firm in China utilizing Alibaba Group’s activities will be thoroughly reviewed. Alibaba Group opens a new tab.
The report further stated that seller UBS (UBSG.S), opens new tab, now the owner of Credit Suisse, will now have to decide between Ant’s higher local bid and Citadel’s lower bid, which was submitted in December and offers between 1.5 billion and 2 billion yuan ($208.47 million) and is more likely to receive government approval.
Ant Group opted not to respond. In order to guarantee that its financial-related operations are properly regulated, the fintech behemoth has been transforming itself into a financial holding company with the assistance of Chinese regulators.
Increased Regulations
Photo: daily news
The competition for Credit Suisse’s China securities business is taking place as the second-largest economy in the world slows down, and the local A-share market is fighting against a flight of foreign capital and increased regulation of IPOs.
Prior to the UBS merger, the founder consented to be bought out by Credit Suisse for 1.14 billion yuan, which put the company’s valuation at roughly 2.3 billion yuan. The agreement has not yet received Chinese regulatory approval.
