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[BENGALURU] UBS will sell its Indian onshore wealth business to asset manager 360 ONE WAM in a deal valued at 3.07 billion rupees (S$47.5 million), the Mumbai-based company said on Tuesday (Apr 22).

360 ONE said it will buy UBS’ local stock broking and distribution business, discretionary and non-discretionary portfolio management services business, and residual loan portfolio.

As part of the deal, UBS will acquire warrants for a 4.95 per cent stake in 360 ONE, the banking giant said in a separate statement.

Additionally, 360 ONE clients booked in Singapore will be served by UBS Singapore, subject to regulatory approvals, UBS said.

This deal will see UBS relinquish equity control in its India onshore wealth business while taking up the offshore wealth business of its local partner.

UBS had exited the Indian onshore wealth business more than a decade ago but returned as part of its global acquisition of Credit Suisse in 2023.

Despite the increasing number of wealthy individuals in one of the fastest-growing economies, foreign private banks have struggled to boost revenues in India due to stiff competition with deeply entrenched local players and regulatory limitations, leading many to exit the market.

UBS’ India wealth partnership model contrasts with its effort to expand in other Asian wealth markets in recent years.

In 2019, it signed a deal with Sumitomo Mitsui Trust in Japan to create a venture, majority-owned by UBS, expanding services for their wealthy and ultra-wealthy clients. In March this year, UBS acquired full ownership of a securities joint venture in China where it serves wealthy clients.

Clients from UBS and 360 ONE will have access to onshore and offshore wealth management solutions, 360 ONE said. The companies will also explore potential opportunities for collaboration on asset management products and investment banking services, it added. REUTERS