Financial services major UBS Investment Bank today said it has entered into an agreement with crises-ridden insurance major American International Group to acquire its commodity index business for $150 million.
The Swiss bank said in a statement that it has entered into a binding agreement to purchase the commodity index business of AIG Financial Products Corp, including AIG's rights to the DJ-AIG Commodity Index.
The transaction is expected to close by May, 2009.
UBS said it would pay $15 million for AIG's product platform of commodity index swaps and funded notes based on the benchmark Dow Jones-AIG Commodity Index (DJ-AIGCI).
Besides, the deal would be followed by additional payments of up to $135 million over the following 18 months based upon future earnings of the purchased business.
The deal is subject to regulatory and other conditions, it added.
