UBS says it has completed the takeover of Credit Suisse
UBS expects to complete its takeover of Credit Suisse "as early as June 12", which will create a giant Swiss bank with a balance sheet of $1.6 trillion.
Swiss bank UBS on Monday said that it had formally completed the takeover of its rival Credit Suisse.
UBS agreed to the $3.2 billion deal in March, with Swiss regulators playing a key role in the acquisition amid worries that severe losses at Credit Suisse destabilizing the banking system.
The newly-enlarged UBS will have a balance sheet of $1.6 trillion and a workforce of 120,000.
Regulators said Friday that they would cover losses of up to 9 billion Swiss francs ($10 billion) after UBS incurs the first 5 billion Swiss francs as part of the transaction, as it absorbs a portfolio that does not entirely "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 New York Stock Exchange, with shareholders receiving one UBS share for every 22.48 Credit Suisse shares held.
The takeover, which follows multiple scandals and years of share price decline at Credit Suisse, controversially wiped out the 16 billion Swiss francs ($17 billion) worth of assets of the bank's AT1 bond holders.
Source: CNBC
