Zurich (AFP) – Swiss banking giant UBS on Friday completed the merger of its parent company with Credit Suisse AG as its fallen rival legally ceased to exist, more than a year after the emergency takeover.
In March 2023, Switzerland’s biggest bank was strongarmed by the government into buying Credit Suisse over fears that the second largest lender in the country might go under and spark a global financial crisis.
In a statement, UBS said Credit Suisse AG — or limited company — had been deleted from the Canton of Zurich’s commercial register, and has thus ceased to exist as a separate entity. The bank added that Credit Suisse AG’s clients are now considered to be clients of UBS AG. However, Credit Suisse customers may continue to use Credit Suisse tools and platforms for an interim period, except in certain cases.
“Today we have achieved a significant 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 sum for an institution ranked among the 30 banks worldwide considered too big to fail. However, the takeover opened up a new chapter for UBS, which found itself forced to clean up a bank rocked by repeated scandals.
After the takeover was completed in June 2023, the two banks had initially continued to operate separately. But with Friday’s merger, UBS has taken over Credit Suisse’s rights and obligations.
“The merger of our parent banks is critical to facilitating the migration of clients onto UBS platforms,” Ermotti said. “It will also unlock the next phase of cost, capital, funding and tax benefits from the second half of 2024,” he added.
© 2024 AFP
