UBS Completes Historic Takeover as Credit Suisse Ceases to Exist
UBS Group AG completed the historic acquisition of its former rival Credit Suisse, marking a new chapter for the Swiss financial sector as the defunct bank has formally ceased to exist.
“Today we have achieved a significant milestone in our integration journey,” Chief Executive Officer Sergio Ermotti said in a statement on Friday.
The merger is an important next step in the task faced by Ermotti to see through the massive integration. It’s “critical to facilitating the migration of clients onto UBS platforms” and it will “unlock the next phase of cost, capital, funding and tax benefits,” Ermotti said.
The end of Credit Suisse Group AG as a separate legal entity closes the book on a bank that played a central role in the history and development of Switzerland. The former Schweizerische Kreditanstalt was founded in 1856 to finance the build-out of the mountainous nation’s railway network, subsequently growing into a powerhouse that symbolized the country’s role as a global financial center.
However, Credit Suisse struggled to adapt to a changed banking landscape after the financial crisis and descended ever deeper into crisis over the past few years when it got hit by a series of scandals and legal issues. It ultimately needed a rescue when a crisis of confidence during the last months of 2022 and early 2023 meant that clients pulled out a torrent of money.