UBS group says will take over credit suisse as early as june 12

The UBS Group is likely to take over embattled Credit Suisse by June 12 this year. The two banks entered a $3.37 billion deal this year where the UBS Group agreed to acquire its embattled rival. Once the acquisition is completed, Credit Suisse shares and American Depository Shares (ADS) will be delisted from the SIX Swiss Exchange (SIX) and the New York Stock Exchange (NYSE).  

In a recent statement, the UBS Group said that its acquisition of Credit Suisse is “subject to registration statement”.

“UBS expects to complete the acquisition of Credit Suisse as early as June 12, 2023. At that time, Credit Suisse Group AG will be merged into UBS Group AG. Completion is subject to the registration statement, which covers shares to be delivered, being declared effective by the US Securities and Exchange Commission, and to satisfaction, or waiver by UBS, of other remaining closing conditions,” the statement read.

As part of the acquisition deal, the Credit Suisse shareholders will get one UBS share for every 22.48 outstanding shares. “The exchange of Credit Suisse ADS may be subject to certain fees,” the bank said.

The bank informed that the obligations of Credit Suisse under its outstanding debt securities will become obligations of the UBS Group. It further said that “Additional information on the specific issues of securities will be contained in investor notices that will be distributed in due course by the relevant stock exchanges, including the Official Notices page of SIX Swiss Exchange and, for certain notes, the Depository Trust Company (DTC)”.

According to Reuters, the UBS Group had been trying to close the deal as soon as possible. The acquisition will help the UBS Group grow significantly and emerge as  Switzerland’s biggest single bank. The bank is expected to hire 1,20,000 employees globally even when it is planning layoffs to reduce costs.