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Citadel Securities bids for Credit Suisse’s China business

Market maker founded by Ken Griffin seeks expansion in country with purchase of investment banking and brokerage unit

Citadel Securities has bid about Rmb2bn ($280mn) for Credit Suisse’s Chinese securities business, as the market maker founded by billionaire Ken Griffin pushes ahead with expansion plans in China, people familiar with the matter said.If successful, the non-binding offer made last month in a range of Rmb1.5bn to Rmb2bn would expand the market maker’s China presence substantially. A Chinese company has made a rival bid, a person with knowledge of the matter said.

UBS put the unit, which includes investment banking and brokerage services, up for sale after taking control of Credit Suisse when it collapsed last year. UBS already has a securities unit in mainland China and cannot hold two licences.

Citadel Securities is licensed as a foreign institutional investor in Chinese markets but does not have a licence to operate a domestic securities business offering brokerage and underwriting services in Shanghai and Shenzhen. Such licences can take years to obtain.

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