UBS to Complete Credit Suisse Take Over by June 12

UBS, the Swiss multinational investment bank announced today that it will be completing the takeover of Credit Suisse by as early as June 12. The announcement comes after UBS agreed to pay 3 billion Swiss francs or $3.37 billion and assume up to 5 billion francs in losses for Credit Suisse in March this year.

The takeover of UBS by Credit Suisse has indeed diminished customer confidence which was brought to the brink of collapse.

UBS has been pushing to close the transaction in record time since it stepped up to acquire Credit Suisse. The move is likely to provide more certainty to the clients of Credit Suisse and employees especially to avert their departures. Its failure was a serious test of the reforms of the banking regulations post the global financial crisis which had hit the markets way back in 2007-2009.

The combined bank will be employing around 1,20,000 people across the globe despite its layoff announcements.

UBS said that the takeover would create a giant balance sheet of $1.6 trillion following a government-backed rescue as previously announced earlier this year.

In a statement released by UBS, accessed by Reuters, "UBS expects to complete the acquisition of Credit Suisse by as early as 12 June 2023. At that time, Credit Suisse AG will be merged into UBS Group AG". UBS, which is also the biggest bank in Switzerland, further said upon completion of the deal, Credit Suisse shares and American Depositary Shares (ADS) will be delisted from the SIX Swiss Exchange (SIX) and the New York Stock Exchange (NYSE).

The shareholders of Credit Suisse will be getting one UBS share for every 22.48 shares they held. It further added that the combined bank will be the undisputed leader in Switzerland. Once the deal is completed, the combined group will be overseeing assets worth around $5 trillion. Thus, UBS will be getting a leading position in the important markets.