Earlier this year as part of a government-backed rescue plan as well as to prevent any financial market volatility, UBS acquired Credit Suisse in a $3.2 billion deal.
long awaited conclusion Credit Suisse Group AG (SWX: CSGN) acquired by the investment banking giant UBS Group AG (SWX: UBSG) could be “by June 12.”
This would signal the birth of a giant Swiss bank with a balance sheet of $1.6 trillion. All that is left for the deal to be completed is its registration details and, according to UBS, the shares to be delivered, which are being declared effective by the United States. Securities and Exchange Commission (SEC), and other remaining closing conditions.
Once the take-over process is complete, each Credit Suisse shareholder will be eligible to receive one UBS share for every 22.48 shares held. In addition, a restructuring process will see that Credit Suisse shares and American Depository Shares (ADS) are delisted from the Six Swiss Exchange and the New York Stock Exchange.
“We view the completion of the acquisition as part of a longer integration process and an important step towards completion,” said Michael Klien, analyst at Zürcher Kantonalbank. see good opportunities for
Together as a single entity, the new bank will have $5 trillion in invested assets.
UBS decides on phased integration of Credit Suisse
The Swiss largest banking firm has been on the takeover of Credit Suisse for a few months. As part of a government-backed rescue plan earlier this year, as well as to prevent any financial market volatility, UBS acquired Credit Suisse has done a deal of $ 3.2 billion. At the time, the cost of the acquisition was a 60% discount to the bank’s market capitalization of $8 billion.
The deal attracted the attention of the Swiss National Bank, the Swiss Federal Department of Finance, and the Swiss Financial Market Supervisory Authority (FINMA). Notably, the Swiss National Bank pledged credit support to facilitate the acquisition. Shortly afterwards, the shares of both the entities jumped up Remarkably but this did not stop UBS as it went ahead to appoint Sergio Ermotti, former Chief Executive Officer (CEO) of UBS Group as the new CEO to oversee the acquisition.
Also, the CEO of Credit Suisse was Ulrich Körner. given A seat on the board of directors of the new enterprise. Koerner had plans to maintain Credit Suisse’s operational continuity and client focus while assisting with the integration process.
However, the deal was about to take another turn last month when concerns were raised about the amount of losses UBS would face if the acquisition was finalised. As reported by Coinspeaker, UBS was likely take on The acquisition resulted in a financial loss of approximately $17 billion. Precisely, $13 billion of the liability represented in fair value adjustments for the rebranded mega financial firm while another $4 billion was from legal and regulatory costs.
With this in mind, UBS decided to undergo a phased integration which may continue for the next few years.
Benjamin Godfrey is a blockchain enthusiast and journalist who loves to write about real life applications of blockchain technology and innovations to drive general acceptance and worldwide integration of the emerging technology. His desire to educate people about cryptocurrencies drives his contributions to well-known blockchain-based media and sites. Benjamin Godfrey is a lover of sports and agriculture.
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