UBS Completes Acquisition of Credit Suisse, Creating Megabank with Tight Regulatory Scrutiny

The merger will be complex both technically and politically, resulting in a megabank bigger than anything Switzerland has seen before.

The merger will be closely watched by clients, employees, politicians and regulators.

UBS and Credit Suisse will continue to operate separately under the UBS umbrella for the time being, but UBS has already created a new board of directors for certain Credit Suisse operations.

The merger will require "waves" of difficult decisions, particularly regarding employment, and the operation will be complex both technically and politically.

The Swiss government, central bank, and financial regulators intervened to prevent the collapse of Credit Suisse after its share prices plunged more than 30%.

The government forced UBS to take over Credit Suisse in a $3.25 billion deal, including guarantees and liquidity.

The merger creates "clarity and stability" and UBS expects its CET1 capital ratio to be around 14% in Q2 of 2023.

The last trading day for Credit Suisse shares is Monday and shareholders will receive one UBS share for every 22.48 Credit Suisse shares.