UBS completes Credit Suisse acquisition to become a banking behemoth

• In March, the Swiss National Bank had said UBS would acquire Credit Suisse.
• Credit Suisse shareholders will receive 1 UBS share for every 22.48 Credit Suisse shares held, UBS said.
• Credit Suisse and UBS had said the deal would value Credit Suisse at Sfr3 billion, or around $3.25 billion.
• Monday marks the last trading day of Credit Suisse Group AG shares on the SIX Swiss Exchange. Credit Suisse Group AG ADS will no longer be traded on the New York Stock Exchange.

Swiss bank UBS on Monday said it has completed the acquisition of troubled rival Credit Suisse.

Credit Suisse Group AG has been merged into UBS Group AG and the combined entity will operate as a consolidated banking group, it said in a statement.

In March, the Swiss National Bank had said UBS would acquire Credit Suisse and that the takeover was made possible by support from the Swiss federal government and FINMA, which regulates Switzerland's finances. Credit Suisse and UBS later said the deal would value Credit Suisse at Sfr3 billion, or around $3.25 billion.

“I‘m pleased that we’ve successfully closed this crucial transaction in less than three months, bringing together two global systemically important banks for the first time. We are now one Swiss global firm and, together, we are stronger,” Colm Kelleher, UBS Group chairman, said in a statement on Monday. “As we start to operate the consolidated banking group, we’ll continue to be guided by the best interests of all our stakeholders, including investors.”

As announced on 19 March 2023, Credit Suisse shareholders will receive 1 UBS share for every 22.48 Credit Suisse shares held, UBS said. Monday marks the last trading day of Credit Suisse Group AG shares on the SIX Swiss Exchange. Credit Suisse Group AG ADS will no longer be traded on the New York Stock Exchange, it said.

In March, Kelleher had said, "This acquisition is attractive for UBS shareholders but, let us be clear, as far as Credit Suisse is concerned, this is an emergency rescue. We have structured a transaction which will preserve the value left in the business while limiting our downside exposure."

The rescue deal was struck a week after US’ Silicon Valley Bank collapsed, which had a ripple effect through the banking sector. Credit Suisse shares dropped after Saudi National Bank, its largest shareholder at the time, warned it wouldn't be able to invest more cash in the bank because of regulatory hurdles. It managed to secure a $50 billion lifeline from the Swiss National Bank and then a deal was struck for its takeover by UBS.