UBS expects to complete its acquisition of Credit Suisse “as early as June 12,” which will create a Swiss bank giant with a budget of $1.6 trillion.
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Swiss bank UBS said on Monday it had formally completed the acquisition of rival Credit Suisse.
UBS approved the $3.2 billion deal in March, with Swiss regulators playing a key role in the acquisition amid concerns that massive losses at Credit Suisse were destabilizing the banking system.
The newly expanded UBS will have a balance sheet of $1.6 trillion and a workforce of 120,000.
Regulators said on Friday 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 deal, as it absorbs a portfolio that does not quite fit its business and risk profile. . “
After the merger, Credit Suisse and its ADS will be delisted from the SIX Swiss Exchange and New York Stock Exchange, with shareholders receiving 1 UBS share for every 22.48 Credit Suisse shares held.
The takeover, which followed multiple scandals and years of falling share prices at Credit Suisse, controversially wiped out 16 billion Swiss francs ($17 billion) of assets for the bank’s AT1 bondholders.
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