UBS has completed its takeover of embattled bank Credit Suisse. The consolidation of the two Swiss banks is the biggest banking deal since the financial crisis, reports Noele Illien in Reuters. She writes:
UBS (UBSG.S) on Monday said it had completed its emergency takeover of embattled local rival Credit Suisse (CSGN.S), creating a giant Swiss bank with a balance sheet of $1.6 trillion and greater muscle in wealth management.
Announcing the biggest banking deal since the 2008 global financial crisis, UBS Chief Executive Sergio Ermotti and Chairman Colm Kelleher said it would create challenges but also “many opportunities” for clients, employees, shareholders, and Switzerland.
The group will oversee $5 trillion of assets, giving UBS a leading position in key markets it would otherwise have needed years to grow in size and reach. The merger also brings to an end Credit Suisse’s 167-year history, marred in recent years by scandals and losses.
Credit Suisse shares were up 0.4% on their last day of trading, while UBS were also up around 0.4% in mid-day trade.
The two banks jointly employ 120,000 worldwide, although UBS has already said it will be cutting jobs to reduce costs and take advantage of synergies.
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