EU Set To OK UBS-Credit Suisse Deal

UBS is expected to obtain unconditional European Union antitrust approval for its proposed acquisition of Credit Suisse, which is facing difficulties. This brings the Swiss bank one step closer to finalizing the transaction, sources familiar with the situation said on Tuesday.

UBS acquired Credit Suisse for 3 billion Swiss francs ($3.4 billion) in stock and took on up to 5 billion francs in losses in March, as part of a merger arranged by Swiss authorities to prevent further disruption to the global banking sector.

The European Commission has a set deadline of June 7 for their preliminary review of the deal, and both Credit Suisse and the Commission have chosen not to provide any comments at this time.

Related: Swiss Parliament Rejects Credit Suisse Rescue Package

UBS, a financial institution with assets twice the size of Credit Suisse, has yet to provide a response to a comment request.

UBS and Credit Suisse both belong to a global group of 30 systematically important banks who are subject to closer scrutiny by regulators. The ramifications of a potential failure of Credit Suisse would be felt across the entire financial system.