UBS (UBSG.S) announced Monday that it had completed its emergency takeover of embattled local rival Credit Suisse (CSGN.S), creating a giant Swiss bank with a balance sheet of more than $1.6 trillion and a lot more muscle in wealth management.
The takeover — the largest banking deal since the 2008 global financial crisis — will be a mixed bag of challenges and opportunities for clients, employees, shareholders and Switzerland, itself, UBS Chief Executive Sergio Ermotti and Chairman Colm Kelleher said.
The two banks now jointly employ 120,000 worldwide, although UBS has already said it will be cutting jobs to reduce costs and take advantage of synergies.
The group will now oversee $5 trillion of assets, giving UBS a leading position in key markets in which it would otherwise have needed years of growth to reach.
The merger also is a quick fix for the 167-year image of Credit Suisse, which has been soiled in recent years by a plethora of scandals and losses.
As a result of the merger, Credit Suisse shares rose 0.4% on their last day of trading, while UBS were also up around 0.4% in mid-day trade.
By Noele Illien/Reuters
