Global Courant
UBS expects to complete its acquisition of Credit Suisse “as early as June 12,” creating a giant Swiss bank with $1.6 trillion in assets.
Fabrice Cofrini | Afp | Getty Images
Swiss bank UBS said Monday it has formally completed its acquisition of competitor Credit Suisse.
UBS agreed to the $3.2 billion deal in March, with Swiss regulators playing a key role in the acquisition amid concerns that severe losses at Credit Suisse would destabilize the banking system.
The recently expanded UBS will have a $1.6 trillion balance sheet and a workforce of 120,000.
Regulators on Friday said they would cover losses of up to 9 billion Swiss francs ($10 billion) after UBS incurred the first 5 billion Swiss francs as part of the transaction because it is absorbing a portfolio that doesn’t quite “fit” its business and risk profile “. .”
Following the merger, Credit Suisse and its American Depositary Shares will be delisted from the SIX Swiss Exchange and the New York Stock Exchange, with shareholders receiving one UBS share for every 22.48 Credit Suisse shares held.
The acquisition, which follows multiple scandals and years of stock decline at Credit Suisse, has controversially wiped out the 16 billion Swiss francs ($17 billion) in assets held by the bank’s AT1 bondholders.
(TagsToTranslate)Credit Suisse Group AG
