(by Ameli Berksman)

UBS AG, a world’s seventh-largest bank by market value, agreed to buy Charles Schwab Corp.’s capital markets unit for $265 million. That would give UBS an opportunity to become a leader on the U.S. Nasdaq exchange, it said.

Schwab noted that the deal will lead to $70-$80 million after-tax charge. It also expected extra costs for exiting the business with charges for severance and real estate, which can lead to $75-$85 million of after-tax charges in 2004.

"This transaction is consistent with our organic growth plan in combination with targeted acquisitions," said John Costas, chief executive of UBS Investment Bank, pointing out that this was not the first acquisition of the bank, aimed at fortifying its activities. He also added that the transaction was an eight-year services agreement for the handling of Schwab’s equities and listed options orders.

UBS has bought 50% of Russian equity broker Brunswick UBS from Brunswick Capital last week. This purchase continued a course of acquisitions including German wealth management division of Merrill Lynch, the French activities of Lloyds TSB plus UK wealth managers Laing & Cruickshank and Scott Goodman Harris. That lifted UBS’s assets under management to $1.75 trillion in June.

Still, specialists doubt the importance of the transaction for UBS.