Swiss SIX to take control of SECB to build bank infrastructure service

ZURICH (Reuters) - Switzerland’s SIX has agreed to take over Germany’s Swiss Euro Clearing Bank GmbH, which connects the main euro clearing systems and processes payment transactions in euros for banks and financial institutions in Switzerland and Liechtenstein.

SIX, which is SECB’s biggest client, has held a 25 percent stake in SECB since 1999 and said on Monday the deal to buy the remaining shares will strengthen its position as a provider of core infrastructure services for banks.

Swiss banks UBS UBSG.S, Credit Suisse CSGN.S and PostFinance each held 25 percent.

The Swiss group did not disclose the purchase price, but said in a statement that the deal should close by the end of 2018, pending regulatory approvals.

“We intend to expand the client base and the product portfolio. This will underpin our efforts to strengthen the positioning of SIX as a provider of core infrastructure services for banks, and ultimately for the entire Swiss financial center,” SIX Chief Executive Jos Dijsselhof said.

Reporting by Michael Shields; Editing by Alexander Smith