UBS expects to complete Credit Suisse acquisition as early as 12 June

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UBS is looking to complete its acquisition of Credit Suisse as early as 12 June, which will create a new powerhouse in European banking and end the uncertainty for more than 100,000 employees of the company.

The plan will see Credit Suisse Group AG merging with UBS Group AG. Completion is subject to the registration statement, which covers shares to be delivered, being declared effective by the US Securities and Exchange Commission, and to satisfaction, or waiver by UBS, of other remaining closing conditions, according to a statement by UBS.

Upon consummation of the acquisition, UBS will be the surviving entity, and Credit Suisse’s shares and American Depositary Shares (ADS) will be delisted from the SIX Swiss Exchange (SIX) and New York Stock Exchange (NYSE), respectively. Credit Suisse shareholders will receive one UBS share for every 22.48 outstanding shares held. Meanwhile, the completion is subject to the registration statement, which covers shares to be delivered, being declared effective by the US Securities and Exchange Commission, and to satisfaction, or waiver by UBS, of other remaining closing conditions, according to the statement released by Credit Suisse.

Meanwhile, it is said that UBS was discussing the retainment of over 100 Credit Suisse's bankers from South Korea, Thailand, Vietnam, India and other Asian countries, but not including China, according to Bloomberg. This is due to UBS and Credit Suisse have more business overlapping in China and the final number of retained bankers will be decided after the discussion with regulatory organisation.

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Back in March, Credit Suisse and larger rival UBS entered into a merger agreement after the Swiss Federal Department of Finance, the Swiss National Bank and FINMA asked both companies to conclude the transaction to restore necessary confidence in the stability of the Swiss economy and banking system.

Under the agreement, all shareholders of Credit Suisse will receive one share in UBS for 22.48 shares in Credit Suisse as merger consideration. This exchange ratio reflects 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 said given recent extraordinary and unprecedented circumstances, the merger represents the best available outcome. "This has been an extremely challenging time for Credit Suisse and while the team has worked tirelessly to address many significant legacy issues and execute on its new strategy, we are forced to reach a solution today that provides a durable outcome.”

MARKETING-INTERACTIVE has reached out to UBS for a statement.

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