POLITICO California’s largest financial services company will be sold to an Asian consortium led by China’s LPL Group and UBS in a deal valued at $9 billion, according to people familiar with the matter.
The deal could open up the financial services industry to greater competition from Asian players and could help UBS and JP Morgan Stanley, the biggest banks in the United States, bolster their positions in the region.
The LPL group is the largest Chinese conglomerate, and China’s state-owned lender, the China Banking Corporation, is the biggest lender in the U.S. and has been a top bidder for LPL.
The deal is subject to regulatory approval by the U-S.
Securities and Exchange Commission.
It is expected to close in the fourth quarter of 2018.
The LPL financial group, which includes Citibank, Bank of America, Barclays, Bankrate, JPMorgan Chase, and HSBC, will sell a portfolio of its assets to the consortium, which will then invest the proceeds in LPL’s financial unit.
It is the first time a Chinese bank or consortium has entered the U