The merger of UBS AG and Credit Suisse AG has officially completed – within the expected timeline.
UBS praised the support from global regulators in facilitating a deal which has been the topic of much discussion across the market since its announcement last year.
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UBS confirmed its intention to take over Credit Suisse in March 2023 with the deal subsequently reported to be worth more than $3.25 billion.
The transition to a single US intermediate holding company is set for 7 June 2024, confirmed the business, with the Credit Suisse (Schweiz) AG and UBS Switzerland AG merger expected later, in Q3 of this year.
Now completed, Credit Suisse will cease to exist as a separate entity and has been deregistered from the Commercial Register of the Canton of Zurich. UBS has assumed all of Credit Suisse’s assets and liabilities as it is merged into its business.
According to UBS, while clients of Credit Suisse AG are now officially clients of UBS AG, for an interim period they will still interact with UBS using existing Credit Suisse platforms and tools – except as specifically communicated.
Sergio Ermotti, chief executive of UBS Group said: “Today we have achieved a significant milestone in our integration journey. The merger of our parent banks is critical to facilitating the migration of clients onto UBS platforms. It will also unlock the next phase of cost, capital, funding and tax benefits from the second half of 2024.
“As we embark on this transitional phase of operational consolidation, we will remain focused on serving our clients, following through on our strategy, investing in our people, and acting as a pillar of economic support in the communities where we live and work.”
Notoriously, the deal between UBS and Credit Suisse was agreed without shareholders’ approval and pushed through under emergency ordinance, issued by the Swiss Federal Council.
At the time, Swiss regulators decided to pay Credit Suisse equity-holders CHF3 billion, whilst writing down the value of AT1 debtholders to zero, a move which raised some possible litigation concerns following announcement of the deal.
