- Advertisement -
ZURICH: UBS introduced Monday it had finalised the takeover of its former rival Credit Suisse, clearing the best way for the Herculean job of integrating two of the world’s most vital banks.
The mega-merger of the most important banks in Switzerland will probably be intently watched by shoppers, workers, politicians and regulators.
“UBS has completed the acquisition of Credit Suisse today, crossing an important milestone,” the financial institution stated in a press release.
“Credit Suisse Group AG has been merged into UBS Group AG and the combined entity will operate as a consolidated banking group.”
UBS, Switzerland’s main financial institution, was compelled into the wedding on March 19 to forestall its closest home rival from going below — with probably catastrophic penalties for the worldwide monetary system.
“I’m pleased that we’ve successfully closed this crucial transaction in less than three months, bringing together two global systemically important banks for the first time,” stated UBS chairman Colm Kelleher.
“We are now one Swiss global firm and, together, we are stronger… Our top priority remains the same: to serve our clients with excellence.”
The merger will probably be complicated each technically and politically, leading to a megabank larger than something Switzerland has seen earlier than — a dimension that has political leaders fearful.
Thousands of jobs may very well be misplaced because of overlapping operations.
To Thomas Jordan, chairman of Switzerland’s central financial institution, there was no different resolution.
“Of course, it’s a pity there is only one (big bank) left. But I am sure that if the takeover by UBS hadn’t succeeded, there would have been an international financial crisis,” the Swiss National Bank chief informed the Sonntagszeitung weekly newspaper.
UBS chief govt Sergio Ermotti stated Monday that “instead of competing, we’ll now unite as we embark on the next chapter of our joint journey. Together, we’ll present our clients an enhanced global offering, broader geographic reach and access to even greater expertise.”
But he warned Friday that the approaching months are prone to be “bumpy”, saying the operation would require “waves” of troublesome choices, notably relating to employment.
At the top of 2022, the 2 giants had round 120,000 workers worldwide, together with 37,000 in Switzerland.
For the time being, the 2 banks will proceed to function individually below the UBS umbrella. But UBS has already created a brand new board of administrators for sure Credit Suisse operations, headed by present UBS vice-chairman Lukas Gaehwiler.
UBS has spent the time since March 19 figuring out a plan of motion for absorbing Credit Suisse.
UBS in all probability already has an concept of what it needs to maintain, shut or promote, however had been “limited in what they could do” till the merger was sealed, Andreas Venditti, an analyst at Swiss funding supervisor Vontobel, informed AFP.
“From Monday onward, UBS can start to be proactive.”
Credit Suisse risked collapse when its share costs plunged greater than 30 % throughout buying and selling on March 15, after three US regional lenders folded.
The Swiss authorities, the central financial institution and the monetary regulators FINMA stepped in and strongarmed UBS right into a $3.25 billion takeover introduced on March 19.
The deal consists of ensures for UBS in case there are any nasty surprises within the Credit Suisse cabinets, and liquidity to facilitate the takeover.
Many questions surrounding the merger stay unanswered, however Venditti stated the image must be clearer after second-quarter monetary outcomes emerge.
UBS has pushed the publication date again by greater than a month to August 31.
FINMA stated the merger completion “marks the end of a phase of great uncertainty” and “creates clarity and stability”.
“FINMA welcomes UBS’s strategic focus, which foresees a rapid reduction of risk in investment banking,” it stated in a press release, referring to probably the most troubled half of Credit Suisse’s operations.
UBS expects its CET1 capital ratio, which compares a financial institution’s capital to its threat-weighted property, to be round 14 % within the second quarter of 2023.
Monday marks the final buying and selling day for Credit Suisse shares on the Swiss inventory alternate. Shareholders will obtain one UBS share for each 22.48 Credit Suisse shares.
The mega-merger of the most important banks in Switzerland will probably be intently watched by shoppers, workers, politicians and regulators.
“UBS has completed the acquisition of Credit Suisse today, crossing an important milestone,” the financial institution stated in a press release.
“Credit Suisse Group AG has been merged into UBS Group AG and the combined entity will operate as a consolidated banking group.”
UBS, Switzerland’s main financial institution, was compelled into the wedding on March 19 to forestall its closest home rival from going below — with probably catastrophic penalties for the worldwide monetary system.
“I’m pleased that we’ve successfully closed this crucial transaction in less than three months, bringing together two global systemically important banks for the first time,” stated UBS chairman Colm Kelleher.
“We are now one Swiss global firm and, together, we are stronger… Our top priority remains the same: to serve our clients with excellence.”
The merger will probably be complicated each technically and politically, leading to a megabank larger than something Switzerland has seen earlier than — a dimension that has political leaders fearful.
Thousands of jobs may very well be misplaced because of overlapping operations.
To Thomas Jordan, chairman of Switzerland’s central financial institution, there was no different resolution.
“Of course, it’s a pity there is only one (big bank) left. But I am sure that if the takeover by UBS hadn’t succeeded, there would have been an international financial crisis,” the Swiss National Bank chief informed the Sonntagszeitung weekly newspaper.
UBS chief govt Sergio Ermotti stated Monday that “instead of competing, we’ll now unite as we embark on the next chapter of our joint journey. Together, we’ll present our clients an enhanced global offering, broader geographic reach and access to even greater expertise.”
But he warned Friday that the approaching months are prone to be “bumpy”, saying the operation would require “waves” of troublesome choices, notably relating to employment.
At the top of 2022, the 2 giants had round 120,000 workers worldwide, together with 37,000 in Switzerland.
For the time being, the 2 banks will proceed to function individually below the UBS umbrella. But UBS has already created a brand new board of administrators for sure Credit Suisse operations, headed by present UBS vice-chairman Lukas Gaehwiler.
UBS has spent the time since March 19 figuring out a plan of motion for absorbing Credit Suisse.
UBS in all probability already has an concept of what it needs to maintain, shut or promote, however had been “limited in what they could do” till the merger was sealed, Andreas Venditti, an analyst at Swiss funding supervisor Vontobel, informed AFP.
“From Monday onward, UBS can start to be proactive.”
Credit Suisse risked collapse when its share costs plunged greater than 30 % throughout buying and selling on March 15, after three US regional lenders folded.
The Swiss authorities, the central financial institution and the monetary regulators FINMA stepped in and strongarmed UBS right into a $3.25 billion takeover introduced on March 19.
The deal consists of ensures for UBS in case there are any nasty surprises within the Credit Suisse cabinets, and liquidity to facilitate the takeover.
Many questions surrounding the merger stay unanswered, however Venditti stated the image must be clearer after second-quarter monetary outcomes emerge.
UBS has pushed the publication date again by greater than a month to August 31.
FINMA stated the merger completion “marks the end of a phase of great uncertainty” and “creates clarity and stability”.
“FINMA welcomes UBS’s strategic focus, which foresees a rapid reduction of risk in investment banking,” it stated in a press release, referring to probably the most troubled half of Credit Suisse’s operations.
UBS expects its CET1 capital ratio, which compares a financial institution’s capital to its threat-weighted property, to be round 14 % within the second quarter of 2023.
Monday marks the final buying and selling day for Credit Suisse shares on the Swiss inventory alternate. Shareholders will obtain one UBS share for each 22.48 Credit Suisse shares.
- Advertisement -