UBS Finalizes Rescue Takeover Of Its Rival Credit Suisse

Swiss bank UBS, has finalised a rescue takeover of Credit Suisse. The move comes as a strategic response to the challenges faced by Credit Suisse in recent times and aims to restore stability and confidence in the bank, as reported by cnbc.

In an open letter, UBS board chair Colm Kelleher and CEO Sergio Ermotti said, "We will bring together the collective expertise, scale and wealth management leadership of both UBS and Credit Suisse to create an even stronger combined firm."

The letter goes on to say that there will be "challenges" as well as "great opportunity," and that the bank will "never compromise on UBS's strong culture, conservative risk approach, or quality service."

UBS agreed to the $3.2 billion sale in March, with Swiss regulators playing a significant role in the acquisition amid concerns that Credit Suisse's massive losses may destabilise the banking system.

The regulators said on Friday that they will guarantee up to 9 billion Swiss francs ($9.98 billion) of losses once UBS incurs the first 5 billion francs as part of the transaction, which has been discussed since Credit Suisse's (CSGN.S) rescue in March.

Following the merger, both Credit Suisse and its American Depositary Shares will be removed from the listings of the SIX Swiss Exchange and the New York Stock Exchange. Shareholders will receive one UBS share for every 22.48 shares of Credit Suisse they own, as part of the delisting process.