UBS expects to finalize its takeover of Credit Suisse as early as June 12, emerging from this rescue deal as a giant Swiss bank with a balance sheet of $1.6 trillion
UBS is expected to complete the government-backed rescue deal aimed to save the business of a troubled lender Credit Suisse by June 12. By that time, Credit Suisse Group will be officially merged into UBS Group.
The deal will still be subject to the registration statement, which defines the details of shares delivery to be declared effective by the U.S. Securities and Exchange Commission (SEC), as well as other remaining closing conditions, UBS explained in a press release on Monday.
Upon completion, Credit Suisse shareholders will receive one UBS share for every 22.48 outstanding shares held. However, the exchange of Credit Suisse American Depositary Shares (ADS) may be subject to certain fees.
At the same time, the deal presupposes that Credit Suisse obligations under its outstanding debt securities will become obligations of the acquiring banking group.
In mid-May, the leading Swiss bank UBS agreed to acquire Credit Suisse as part of an emergency sale that was approved by the Swiss government. At that time, UBS Group AG expected to make a profit of about $34.8 billion by the acquisition deal. The amount of legal and regulatory costs associated with the takeover were estimated at $4 billion.
Upon completion, UBS will also get a banking group overseeing $5 trillion of assets, with a leading position in key markets it would otherwise need years to reach.
“I am convinced this is going to be a great story not only for our shareholders and employees but also for our clients and for the financial services industry in Switzerland,” says UBS CEO Sergio Ermotti at the financial conference on Friday.
