As an unprecedented move in European banking history, UBS anticipates the conclusion of its Credit Suisse acquisition by June 12. This merger will mark the birth of a robust banking giant while simultaneously closing a chapter of ambiguity for the 100,000+ workforce.
Under the plan, Credit Suisse Group AG will consolidate with UBS Group AG, dependent on the registration statement for share delivery getting greenlighted by the US Securities and Exchange Commission and the fulfilment or waiver of other remaining conditions by UBS.
Post-acquisition, UBS will emerge as the surviving entity. Credit Suisse’s shares and American Depositary Shares (ADS) are poised to be delisted from the SIX Swiss Exchange and the New York Stock Exchange. In return, Credit Suisse shareholders will earn one UBS share for every 22.48 outstanding shares held.
Sources indicate that UBS is mulling over the retention of over 100 Credit Suisse’s bankers from South Korea, Thailand, Vietnam, and India, barring China due to business overlap between UBS and Credit Suisse in that region. Final decisions will be made after discussions with regulatory organisations.
Credit Suisse merged with its larger competitor, UBS, this past March following a request from the Swiss Federal Department of Finance, the Swiss National Bank, and FINMA. This merger aims to rebuild confidence in the Swiss economy and banking stability.
Credit Suisse shareholders are to receive one UBS share for 22.48 shares in Credit Suisse. This exchange ratio signifies a merger consideration of US$3.3 billion for all shares in Credit Suisse. Axel P. Lehmann, chairman of the board of directors of Credit Suisse, views this merger as the optimal solution amid recent challenging times for the banking corporation.
This article is based on a piece from marketing-interactive.com.
