Switzerland’s financial markets regulatory authority FINMA has concluded the antitrust control procedure for the previously announced CHF3bn ($3.4bn) merger of UBS and Credit Suisse without imposing any conditions and obligations.
The Swiss financial market supervisor said that UBS’ acquisition of Credit Suisse will not eliminate effective competition in any market segment after an extensive review.
FINMA endorsed the transaction on 19 March 2023 under the Cartel Act. This decision aimed to safeguard creditor protection interests and prevent significant harm to both the Swiss financial sector and global financial markets.
The financial regulator has also notified the Competition Commission (COMCO) in advance of the publication of the merger of the two banks that it would take responsibility for executing the competitive assessment.
COMCO and FINMA jointly carried out comprehensive market analyses and evaluated various statements from competitors, associations and specific customers.
FINMA intends to continue to closely assess the integration of Credit Suisse into UBS from its supervisory perspective.
Announced in March 2023, UBS’ agreement to acquire Credit Suisse was to restore confidence in the Swiss economy and banking system.
It came after an intervention by the Swiss Federal Department of Finance, the Swiss National Bank and FINMA.
Under the terms of the merger agreement, Credit Suisse shareholders will receive one share of UBS common stock, in exchange for 22.48 Credit Suisse shares held.
The business combination will create a global wealth management company, with about $5 trillion of invested assets.
Besides, the merger will bolster UBS’ position as a wealth manager with over $3.4 trillion in invested assets on a combined basis.
