UBS says takeover of Credit Suisse is now complete

By Barbara Kollmeyer

The historic takeover of Credit Suisse is now complete, UBS, arch rival of the failed Swiss bank announced Friday.

Credit Suisse has been deregistered in Zurich and will cease to exist as a separate entity, UBS (UBS) (CH:UBSG) said in a news release.

The bank has "succeeded to all the rights and obligations of Credit Suisse AG, including all outstanding Credit Suisse AG debt instruments." Credit Suisse and UBS will begin trading as a single U.S. intermediate holding company on June 7.

In a statement, UBS Group Chief Executive Sergio Ermotti said a "significant milestone" had been reached. "The merger of our parent banks is critical to facilitating the migration of clients onto UBS platforms. It will also unlock the next phase of cost, capital, funding and tax benefits from the second half of 2024," he said.

More than a year ago, Credit Suisse agreed to be bought by UBS in a $3 billion in deal backed by the Swiss government after a wave of customer deposits exited the bank. The deal gave UBS, one of the biggest wealth managers in the world, an even bigger reach across Europe and Asia.

Earlier this month, UBS posted a return to profit after two straight quarters of losses, outstripping analysts' forecasts. The Swiss bank's earnings sheet was boosted by the addition of $3.83 billion in revenue from Credit Suisse, and its global wealth-management arm added $27 billion in new assets from the takeover as it took on its rivals' clients.

UBS announced a shake-up to its executive board on Thursday, promoting some executives who have been considered potential successors to Ermotti.

Shares of UBS, up 9% so far this year, rose 1.2% on Friday.

-Barbara Kollmeyer

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05-31-24 0746ET

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