UBS AG, shaken by the U.S. subprime crisis, said Friday it would drop its plans for acquiring India's Standard Chartered Bank.
Switzerland's largest bank said that, after a sale and purchase agreement made last year had expired, a decision was reached not to pursue further negotiations on the deal.
UBS originally had planned a complete take over of both Standard Chartered Asset Management Company Private Ltd. and Standard Chartered Trustee Company Private Ltd. for an expected amount of 147 million Swiss francs (US$128 million; euro88.2 million).
"Any costs accruing to UBS through abandonment of the planned transaction will be negligible and will have no material impact on UBS's earnings," UBS said in a statement.
UBS said it remained committed to the Indian market and the Asian Pacific region, and would continue with a strategic alliance set up in April with Standard Chartered Bank for fund distribution in Asia.
Shares in UBS closed down 0.4 percent at 52.40 Swiss francs (US$45.64; euro31.44) in Zurich trading Friday.
The Swiss bank, which has been struggling with the impact of the subprime crises in the United States, has made 16 billion Swiss francs (US$14 billion; euro9.64 billion) in writedowns in the second half of 2007. Earlier this month it said it would post a fourth-quarter loss. It could not record a loss for the full year.
UBS AG says acquisition plans for India's Standard Chartered Bank dropped
