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Swiss multinational investment bank UBS on Monday said that it will complete its takeover of Credit Suisse by “as early as June 12”. This takeover would create a giant balance sheet of $1.6 trillion following a government-backed rescue earlier this year.
UBS said in a statement accessed by Reuters: “UBS expects to complete the acquisition of Credit Suisse by as early as 12 June 2023. At that time, Credit Suisse AG will be merged into UBS Group AG”. UBS, which is also the biggest bank in Switzerland, further said upon completion of the deal, Credit Suisse shares and American Depositary Shares (ADS) will be delisted from the SIX Swiss Exchange (SIX) and the New York Stock Exchange (NYSE).
Credit Suisse shareholders will get one UBS share for every 22.48 shares they held. UBS further noted its statement that the combined bank will be the “undisputed leader in Switzerland”. Once the deal closes, the combined group will oversee assets worth around $5 trillion. This will give UBS a leading position in the important markets.
The UBS-Credit Suisse deal has been backed by 200 billion francs in liquidity from the Swiss central bank and government’s commitment to swallow up to 9 billion francs in losses on top of those borne by the UBS. UBS has been pushing to close the transaction in record time in hopes to provide more certainty to Credit Suisse clients and employees and avert departures.
In March this year, UBS agreed to pay 3 billion Swiss francs or $3.37 billion and assume upto 5 billion francs in losses for Credit Suisse after lowered customer confidence brought it to the brink of collapse. Swiss authorities had also stepped into avert a much broader banking crisis.
Will UBS lay off more people or hire more if the Credit Suisse takeover is materialised?
Furthermore, the combined bank will employ around 1,20,000 people worldwide despite its job cut announcement. UBS CEO Sergio Ermotti on Friday warned of painful decisions about job cuts after the Credit Suisse takeover.
Switzerland’s biggest bank is also looking to retain over 100 Credit Suisse Group investment bankers across Asia as a part of its plan to shore up talent in markets where it does not have a dominant presence.
UBS is in advanced talks to retain senior Credit Suisse staff in markets including India, South Korea, Thailand, and Vietnam after the takeover. UBS’ retention target did not include China, as per a Reuters report.
(With Reuters inputs)
Also read: Credit Suisse lost $68 billion in assets last quarter, outflows continue amid takeover by UBS
Also read: Swiss Finance Minister confident of smooth UBS takeover of Credit Suisse
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