UBS TO BUY AIG’S COMMODITY INDEX BUSINESS

Switzerland-based bank UBS has signed a binding agreement to buy the commodity index business of AIG Financial Products Corp. The unit, which is being bought by the equities business of UBS Investment Bank, comprises a product platform of commodity index swaps and funded notes based on the Dow Jones- AIG Commodity Index. The deal includes AIG’s rights to the Index. UBS is paying $15m on closure — expected to take place this May — with additional payments of up to $135m over the following 18 months, based on the commodity index business’s earnings. UBS noted that “the closing is subject to a number of regulatory and other conditions. No assurances can be given that any such conditions will be satisfied”.