On Monday, multinational investment bank UBS announced the completion of its takeover of ailing rival Credit Suisse.
The merger was regarded as “crossing an important milestone” by UBS, who stated that Credit Suisse Group AG had been merged into UBS Group AG and that the new business will function as a consolidated banking group.
The new financial behemoth has a $1.6 trillion balance sheet, which is approximately double Switzerland’s annual output (about $807 billion in 2022).
Credit Suisse Group shares will cease trading on the Swiss Exchange on Monday, while the bank’s American Depositary Shares (ADS) will cease trading on the New York Stock Exchange, according to a statement. For every 22.48 Credit Suisse shares owned, Credit Suisse shareholders will receive one UBS share. On Monday morning, the bank’s stock was trading at 81 centimes (approximately $0.9).
In March, Switzerland-based UBS agreed to buy Credit Suisse for $3.25 billion in a government-brokered deal intended at restoring public trust in the Western financial system and preventing a global crisis following the failures of two regional banks in the United States.
Credit Suisse, Switzerland’s second-largest bank, has encountered a series of scandals, legal challenges, and customer exodus in recent years. Saudi National Bank, its largest investor, announced in March that it would be unable to give financial support owing to regulatory and statutory constraints. Credit Suisse reported a net loss of 7.3 billion francs (almost $8 billion) in 2022.
The transaction brings an end to Credit Suisse’s 167-year history, and the entire situation has harmed Switzerland’s position as a stable global financial center.
