Switzerland’s largest banking institution UBS has completed its takeover of Credit Suisse, the country’s second-largest banking institution, following a banking crisis that rattled the global financial system.
The acquisition has created a Swiss mega-bank with a balance sheet worth $1.6 trillion (€1.49 trillion), and manages roughly $5 trillion (€4.65 trillion) in assets, making it the world’s largest wealth manager.
In an open letter, the bank’s chairperson Colm Kelleher and CEO Sergio Emmotti said, “We will bring together the collective expertise, scale and wealth management leadership of both UBS and Credit Suisse to create an even stronger combined firm.”
UBS had agreed to buy the bank for 3 billion Swiss francs (CHF) (€3.09 billion) on 19th March, just days after concerns arose that Credit Suisse was at risk of defaulting on its debts.
On 9th June, the bank struck a deal with the Swiss Government on the conditions of a CHF 9 billion (€9.27 billion) public backstop for losses from winding down parts of Credit Suisse’s operations.
The Swiss Government and UBS both said that the rescue was necessary to safeguard Switzerland’s standing as a financial centre, and to prevent a global banking crisis.
Mr Emmotti warned that the coming months will be bumpy as the acquisition gets on, which is estimated to take three to five years.
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