2023-06-12 19:19:44
UBS said it had completed the acquisition of troubled Credit Suisse, turning it into a giant Swiss bank with a budget of $1.6 trillion.
The group will manage $ 5 trillion in assets, which will give UBS – the world’s largest wealth management bank – a leading position in key markets.
The merger also ended a 167-year history for Credit Suisse, which in recent years has been marked by scandals and financial losses.
Credit Suisse shares were traded on Monday for the last time on the Swiss stock exchange, and shareholders will receive one UBS share for every 22.48 shares held in Credit Suisse.
Together, the two banks will have 120,000 employees worldwide. However, UPS has already said it will cut jobs to take advantage of the merger and cut costs.
“This is the beginning of a new chapter,” UBS CEO Sergio Ermotti and Chairman Colm Kelleher said in an open letter published by Swiss newspapers.
They added that the biggest deal in the banking sector since the 2008 global financial crisis would create “challenges”, but would also present “many opportunities” for its clients, employees, shareholders and for Switzerland.
In the letter, they added that they had no doubts regarding successfully managing the acquisition.
On March 19, UBS agreed to buy Credit Suisse at an approximate price of 3 billion francs in the form of shares, and 5 billion francs in assumed losses in a rescue operation arranged by the Swiss authorities to prevent the collapse of customer confidence due to the collapse of the second largest bank. country.
On Friday, UBS concluded an agreement with the Swiss government on general support terms of 9 billion francs ($10 billion) to deal with losses arising from the termination of some of Credit Suisse’s activities.
UBS is set to record a huge profit in the second quarter on August 31, following buying Credit Suisse for a fraction of what it calls its fair value.
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