SIX has signed an agreement to increase its stake in the Germany-based Swiss Euro Clearing Bank (SECB) from 25% to 100% for an undisclosed amount.
SIX, which owns 25% stake in the German bank since 1999, will acquire the remaining stake from UBS, Credit Suisse and PostFinance, who own 25% each in SECB.
Through this acquisition, SIX hopes to bolster its position as a core infrastructure service provider to banks.
SIX CEO Jos Dijsselhof said: “In line with the strategy that SIX is pursuing, our acquisition of the shares in SECB offers us the opportunity to maximise the benefits for the Swiss financial centre.
“We intend to expand the client base and the product portfolio. This will underpin our efforts to strengthen the positioning of SIX as a provider of core infrastructure services for banks, and ultimately for the entire Swiss financial centre.
“In that way we will also strengthen the competitiveness of the Swiss financial centre.”
Primarily, SECB processes payment transactions in Euros primarily in Switzerland and Liechtenstein as well in other market of the regions.
Besides operating as a correspondent bank for the lenders, it also manages the euroSIC system operated in Switzerland by SIX.
Additionally, it has the responsibility of liquidity management for euroSIC system and act as a settlement agent for all participants.
SECB CEO Hans Joachim Michel said: “The initiative for the acquisition came from both companies. In many respects we see ourselves as a payments service provider with a banking licence.”
The deal is subject to supervisory approvals and is expected to complete in the fourth quarter of 2018.