Daiwa to buy KBC's convertible bond business

Daiwa Capital Markets is to set to acquire the Hong Kong-based global convertible bonds business of KBC Group, along with the Belgian firm’s Asian equity derivatives platform. The $1 billion deal, which is subject to regulatory approval, is a part of Daiwa’s strategy to build a global derivatives business centred on Asia. KBC trading positions reportedly account for $800 million of the transaction, with the remainder on staff, infrastructure and non-trading assets.

Both the convertible bonds and equity derivatives businesses will sit within Daiwa’s global derivatives product line, headed by Dominique Blanchard.