- The merger means UBS now assumes all rights and obligations of Credit Suisse, including its outstanding debt instruments.
- UBS CEO Sergio Ermotti emphasized that the merger will bring cost, capital, funding, and tax benefits starting in the second half of 2024.
UBS has completed its acquisition of Credit Suisse, marking an important moment in the Swiss banking sector under a single and massive entity, Reuters reported. This significant milestone has brought about a sense of closure to the dramatic collapse of Credit Suisse and set the stage for an integration process that will reshape the future of UBS and its clients.
The completion of this merger means UBS has assumed all rights and obligations of Credit Suisse, including outstanding debt instruments. This merger follows the timeline UBS laid out, with support from global regulators facilitating the process.
With the merger complete, UBS faces the task of integrating Credit Suisse’s IT systems, client base, and workforce. The combined entity now has more than 110,000 employees. UBS CEO Sergio Ermotti highlighted the importance of this milestone, stating that it will “unlock the next phase of cost, capital, funding, and tax benefits from the second half of 2024.”
See Related: BlackRock Contracted To Dispose Of Credit Suisse Asset-Backed Bonds
Integration Challenges and Opportunities
Ahead of the merger completion, UBS announced changes to its executive board. The shake-up includes splitting its top wealth management role, and creating new responsibilities for key executives. This restructuring aims to streamline leadership and prepare the bank for the challenges and opportunities ahead.
The merger has created a single global bank in Switzerland with a balance sheet twice the size of the country’s annual economic output. This consolidation has sparked concerns about the risks posed by a bank deemed “too big to fail.” The Swiss government is developing measures to mitigate these risks, emphasizing the need for robust regulatory frameworks.
UBS plans to transition to a single US intermediate holding company by June 7, with the merger of Credit Suisse Switzerland and UBS Switzerland expected in the third quarter of 2024. Despite initial market jitters following government proposals to address the TBTF risk, UBS shares have rebounded and are trading higher than before these plans were unveiled.
