UPS says it has completed its acquisition of Credit Suisse

UBS expects to acquire Credit Suisse “by June 12,” creating a giant Swiss bank with a balance sheet of $1.6 trillion.

Fabrice Gaffrini | Afp | Good pictures

On Monday, Swiss bank UBS said it had formally completed its acquisition of rival Credit Suisse.

UBS agreed to a $3.2 billion deal in March, with Swiss regulators playing a key role in the takeover amid concerns heavy losses at Credit Suisse could destabilize the banking system.

The newly expanded UBS will have a $1.6 trillion balance sheet and 120,000 employees.

Regulators said Friday that after UBS paid up to 5 billion Swiss francs as part of the transaction, it will cover losses of up to 9 billion Swiss francs ($10 billion) as it “absorbs a portfolio that does not fully fit its business and risk profile. .”

Following the merger, Credit Suisse and its American depositary shares will be delisted from the SIX Swiss Exchange and the New York Stock Exchange, with shareholders receiving one UBS share for every 22.48 Credit Suisse shares.

The takeover, which follows a string of scandals at Credit Suisse and years of declining stock prices, has controversially wiped out 16 billion Swiss francs ($17 billion) worth of the bank’s AT1 bondholders.

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