Source: AFP
Swiss banking giant UBS completed the merger of its parent company with Credit Suisse AG on Friday as its embattled rival legally ceased to exist, more than a year after the surprise takeover.
In March 2023, Switzerland’s biggest bank was gunned down by the government to buy Credit Suisse amid fears the country’s second-biggest lender could collapse and trigger a global financial crisis.
In a statement, UBS said Credit Suisse AG — or limited liability company — had been struck off the commercial register of the Canton of Zurich and therefore ceased to exist as a separate entity.
The bank added that clients of Credit Suisse AG are now considered clients of UBS AG.
However, Credit Suisse clients may continue to use Credit Suisse’s tools and platforms for an interim period, except in certain circumstances.
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“Today we reached an important milestone in our integration journey,” said UBS chief executive Sergio Ermotti.
Under pressure from the Swiss government, UBS agreed to take over the troubled lender for $3.25 billion, a modest amount for an institution that ranks among the 30 banks worldwide considered too big to fail.
But the takeover opened a new chapter for UBS, which has been forced to clean up a bank rocked by repeated scandals.
After the acquisition was completed in June 2023, the two banks initially continued to operate separately.
But with Friday’s merger, UBS assumed the rights and obligations of Credit Suisse.
“The merger of our parent banks is critical to facilitating the migration of clients to the UBS platforms,” said Ermotti.
“It will also unlock the next phase of cost, capital, financing and tax benefits from the second half of 2024,” he added.
Source: AFP