The Swiss bank UBS received today the unconditional support of the European Commission for the acquisition of “Credit Suisse” (Credit Suisse) earlier this year, which was part of a rescue operation led by the Swiss government, informed Reuters and BTA.
According to the EC, the deal does not create concerns for competition in Europe.
The combined entity will continue to face significant competitive pressure from a wide range of competitors in all these markets, including several major global banks, specialist suppliers and strong domestic players, according to the European Commission.
UBS, which is twice the size of Credit Suisse in terms of assets, has agreed to buy the rival financial institution for 3 billion Swiss francs. francs in shares and absorb losses worth up to 5 billion francs in March under an emergency merger brokered by the Swiss government to prevent the turmoil in the banking sector from escalating.
Both UBS and Credit Suisse are among the 30 global systemically important banks closely watched by regulators, and a collapse of Credit Suisse would be felt throughout the financial system, Reuters notes.
Tags: European Commission approved acquisition Credit Suisse UBS