Investing.com-- Jack Ma’s Ant Group outbid Citadel Securities for Credit Suisse’s investment bank unit in China- a move that is expected to attract a heavy dose of regulatory scrutiny, Bloomberg reported on Monday.
The move is likely a bid by Ant to build a securities business using Credit Suisse’s unit, but is likely to face regulatory scrutiny given that Chinese authorities will be more inclined towards a foreign buyer for the unit.
The Bloomberg report did not specify the value of Ant’s bid. Citadel had in late-2023 reportedly offered between 1.5 billion yuan ($210 million) to 2 billion yuan for the unit.
Ant’s approach potentially signals more trouble for Swiss bank UBS Group AG (SIX:UBSG), which had taken over Credit Suisse (SIX:CSGN) in 2023 and put the Chinese unit on sale, given that it already controls a securities firm in China.
But the bank had struggled to find a buyer for the Chinese unit, amid increased geopolitical tensions between the U.S. and China, uncertainty over Beijing’s regulatory stance and persistent concerns over an economic slowdown in the world’s second-largest economy.
Ant’s move comes after the Jack Ma-backed fintech giant was slapped with a massive 7 billion yuan fine by Beijing in 2023, after a botched listing and as China embarked on a regulatory crusade against its biggest technology firms.
Jack Ma’s Alibaba Group (NYSE:BABA) (HK:9988) had also come under increased regulatory scrutiny over the past three years.
Alibaba’s shares fell 0.5% in Hong Kong trade on Monday.