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UBS Completes Merger with Credit Suisse

 |  June 2, 2024

UBS announced on Friday the completion of the merger with Credit Suisse, finalizing the acquisition of its longtime rival that had collapsed last year. The successful merger integrates the main parent companies of the two Swiss banking giants, bringing an end to one of the country’s most storied financial institutions.

Shares in UBS rose by 1.35% to trade at a higher level following the announcement, reflecting investor confidence in the newly consolidated entity. UBS has inherited all rights and obligations of Credit Suisse, including its outstanding debt instruments. This step was completed within the planned timeline, largely thanks to robust support from global regulators. Since acquiring Credit Suisse for 3 billion Swiss francs ($3.3 billion) last year, UBS’s shares have surged by approximately two-thirds.

The parent merger is a crucial step for UBS as it embarks on more challenging aspects of the integration process, including merging IT systems, transitioning Credit Suisse clients to UBS, and rationalizing the combined workforce, which now exceeds 110,000 employees. UBS CEO Sergio Ermotti described the merger as a “significant milestone,” emphasizing its importance for the seamless migration of clients to UBS platforms.

Related: UBS Gets EU Approval for Credit Suisse Acquisition

“It will also unlock the next phase of cost, capital, funding, and tax benefits from the second half of 2024,” Ermotti added, highlighting the strategic advantages anticipated from the merger.

This milestone follows a recent executive board shake-up announced on Thursday, which redefined roles within UBS’s top management. The reorganization aims to split its top wealth management role, assigning new responsibilities to two leading contenders to succeed Ermotti in the future.

Source: Reuters