UBS Investment Bank has signed a transfer agreement with Barclays Bank PLC regarding the further sale of parts of its non-strategic Commodities businesses.
UBS confirms that Barclays Capital has agreed terms for transferring the risks associated with UBS Base Metals, Oil and US Power & Gas businesses. It expects to complete the full risk transfer by end of the second quarter, subject to certain conditions being fulfilled. Terms and conditions of the deal are not disclosed.
This follows the announcement on 22 December 2008 that J.P. Morgan has agreed to buy the entire Canadian-based commodities energy business and UBSs Global Agricultural businesses.
In October 2008, UBS Investment Bank announced, that following a thorough review, it would reprioritize its business portfolio to preserve its core strengths and client franchises in the Securities and Advisory businesses, while downsizing or exiting certain business activities. As part of this, the Investment Bank is exiting all of its Commodities businesses with the exception of Precious Metals and the Index and Exchange-Traded Commodities activities
D.C.