American International Group has found a buyer for another of its business lines, UBS Investment Bank is set to buy the commodity index business from AIG’s Financial Products Corp. division.
The equities business of UBS Investment Bank announced Monday that it has entered into a binding agreement to purchase the commodity index business of AIG Financial Products Corp, including AIG’s rights to the benchmark Dow Jones-AIG Commodity Index. The business is comprised of a product platform of commodity index swaps and funded notes based on the DJ-AIG Commodity Index.
UBS will pay US$15 million upon closing, and additional payments of up to US$135 million over the following 18 months based upon future earnings of the purchased business. The deal’s closing, which is subject to a number
of regulatory and other conditions, is expected by May.
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UBS agrees to buy commodity business from AIG
- By: James Langton
- January 19, 2009 January 19, 2009
- 09:05