Swiss bank UBS Group (UBS) is selling its 50% stake in credit card provider Swisscard to American Express (AXP).
UBS inherited the stake in Swisscard through its acquisition of former rival Credit Suisse, which it is in the final stages of completing.
UBS agreed to acquire Credit Suisse in 2023 for $3.2 billion U.S. after that bank collapsed.
Now, UBS is selling its 50% ownership stake in Swisscard to U.S. credit card company American Express.
American Express was already the joint venture partner in Swisscard, and the sale makes it the sole owner of Swisscard moving forward. Financial terms of the deal were not disclosed.
Swisscard will continue to issue all its current credit cards, not only from American Express but also Mastercard (MA) and Visa (V).
Swisscard said that there should be no impacts to current cardholders, merchants, or partners because of UBS selling its stake to American Express.
This is not the first part of Credit Suisse to be divested by UBS. Earlier this year, UBS sold its stake in Credit Suisse Securities China.
UBS stock has increased 6% so far in 2024 and currently trades at $32.33 U.S. per share.