Jack Ma’s Ant outbids Ken Griffin’s Citadel for Credit Suisse China investment bank

The bid by Jack Ma-backed fintech giant to build a securities business using Credit Suisse’s operations will face a thorough review because China favors a foreign buyer, the people said. The investment banking and brokerage license was originally awarded to the Swiss bank to help open the financial sector to global competition, one of the people said, asking not to be identified discussing private matters.

That preference poses a dilemma for UBS Group AG, which now owns Credit Suisse. For now, the bank will have to choose between the higher local bid from Ant, or the lower Citadel offer that’s more likely to win government approval, the people said. The negotiations are ongoing and other bidders may still join the fray, one of the people said.

Representatives for UBS and Ant declined to comment.  

UBS is struggling to attract interest in the unit from global firms because of escalating geopolitical tensions, a crackdown on bank data flows and the struggling economy. The bank faces a difficult balancing act because the venture’s Chinese partner, Founder Securities, may reject the lower offer from Citadel, delaying the sale process, the people said. 

Citadel Securities, founded by billionaire Ken Griffin, was the only global firm to submit a bid in late December, offering about 1.5 billion yuan ($210 million) to 2 billion yuan, people said at the time. 

Credit Suisse has sought around 2 billion yuan for the entire China unit, including the stake held by Founder Securities. Before it collapsed in March, the Swiss bank had offered to buy out the remaining stake from its partner for 1.14 billion yuan, valuing the firm at about 2.3 billion yuan. The agreement was nixed after the UBS takeover, people familiar said earlier. 

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