UBS buys AIG commodity business
Swiss bank UBS will pay up to USD 150 million to insurance giant AIG.ZURICH - Swiss bank UBS AG said Monday it is buying the commodity index business of American International Group Inc for up to USD 150 million (CHF 168.3 million).
UBS said it would pay USD 15 million upfront for AIG's product platform of commodity index swaps and funded notes.
This would be followed by further payments of up to USD 135 million over the following 18 months, depending on how the business fares, it said.
The bank said the deal is subject to regulatory and "other conditions", without specifying.
New York-based insurance giant AIG is in the process of restructuring its business after receiving a massive cash infusion in 2008 from the US government.
[AP / Expatica]