Swiss bank UBS (NYSE:UBS) on Monday said that it formally completed the takeover of its rival Credit Suisse.
“Instead of competing, we’ll now unite as we embark on the next chapter of our joint journey,” UBS Group’s newly-returned CEO Sergio Ermotti said in a statement.
In an open letter, the bank’s chiefs also said they would not compromise UBS’s “strong culture” or “conservative risk approach.” Risk management failures over a number of years played a key role in Credit Suisse’s eventual downfall.
UBS Group will manage UBS and Credit Suisse as separate banks for the short term, while questions linger over the future of assets including Credit Suisse’s prized retail bank.
Following the acquisition, Credit Suisse and its American Depositary Shares will be delisted from the SIX Swiss Exchange and New York Stock Exchange, with shareholders receiving one UBS share for every 22.48 Credit Suisse shares held.
The enlarged UBS will have a balance sheet of $1.6 trillion and a workforce of 120,000. Ermotti previously warned the new group “won’t be able to create, short term, job opportunities for everybody. Synergies is part of the story.” The combined company will report its first consolidated results on August 31.
UBS said Monday it expected “Credit Suisse operating losses and significant restructuring charges” to be offset as it ditches risk-weighted assets, and forecast a common equity tier 1 capital ratio — a measurement of capital against assets — of around 14% for the rest of the year.
UBS shares eked higher three cents to $20.22.
