UBS is set to complete its takeover of Credit Suisse “as early as June 12th”, creating a giant Swiss bank with a balance sheet of $1.6 trillion. This move will make UBS the largest wealth manager in Europe and one of the world’s top five banks by assets, surpassing even JPMorgan Chase & Co.
The merger has been approved by both companies’ shareholders and regulators, including Switzerland’s Federal Competition Commission who gave their approval on May 28th after reviewing anti-trust issues surrounding the deal. The new entity will be called UBS Group AG and it will have headquarters in Zurich, Switzerland where current CEO Sergio Ermotti is expected to remain in his post until 2022 when he plans to retire from executive duties though he may stay on as chairman or advisor afterward.
This massive merger marks a major shift for the European banking industry, which has seen several large deals over recent years, such as Deutsche Bank’s purchase of Commerzbank last year for 14 billion euros ($15 billion). With this acquisition, UBS gains access to Credit Suisse’s strong presence in Asia Pacific markets while also expanding its wealth management services across Europe significantly; something that analysts say could help them become an even more formidable force within global finance than they already are today.
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