The big bank era is coming to an end: what you need to know about the expiration of Credit Suisse on June 12

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The end of Credit Suisse is now near: the traditional bank will no longer be able to celebrate its 167th birthday. Founded on July 5, 1856, the fate of CS was determined on June 12, 2023. UBS will then legally complete the takeover of the sick competitor. From that day on, the old SKA is no longer an independent bank.

The merger of the two major Swiss banks will create a megabank with assets under management of approximately CHF 4.55 trillion. Observers cite the most significant takeover in the European financial sector since the financial crisis 15 years ago.

Blick answers the most important questions about historical history.

The person who removes the stock from the stock market, that is, delisting, has to notify it seven days in advance. That’s why UBS announced today that the deal is closing. The only caveat: The US stock market regulator, the SEC, must approve the takeover. But it just seems like a formality.

On this day, all signatures are placed under the transfer agreement. In the presence of numerous lawyers, the signature could even be completed by Sunday evening. This means that the takeover of CS by UBS has been legally and officially approved and will take effect on June 12.

CS will become the property of UBS only after the deal is completed. UBS now has full access to all of its former competitor’s business records, which was not the case before. He can now officially speak to all CS employees. First of all, to answer a central question: what risks are still dormant in the CS books. This creates planning security and allows decisions to be made about the future of the new UBS subsidiary, Credit Suisse.

It will be delisted in New York on 12 June and will likely be delisted from the Swiss stock exchange a day later. Shareholders then receive one UBS share for 22.48 CS shares.

The leading Swiss index needs a successor to the share, as the CS share will no longer be included in the SMI. Logistics group Kuehne & Nagel will likely be included as a new addition. This is somewhat surprising, considering that billionaire founder Klaus-Michael Kühne (86) owns most of the shares. However, the opportunities for the logistics group are good, as the volume of free movement and trade is large enough.

If these belong to CS, like the headquarters at Paradeplatz, they are now owned by UBS. By the way, the same applies to debts and obligations of CS. UBS should be responsible for this from 12 June. The same applies to existing office or branch leases.

Under the umbrella of UBS Group AG, UBS AG and Credit Suisse AG will operate as parent companies for all business units. These will continue to be managed separately at the outset until a decision is made regarding the integration or dissolution of the CS units.

NO! Currently, most experts believe it may take another three to four years for the Credit Suisse name to disappear completely. Even as a by-product of CS Switzerland, the brand can live for a long time. Politicians would like it, but it doesn’t seem very realistic right now.

Nothing! For now, you keep your account details, contacts or mortgage agreements with CS.

Employment contracts with CS remain valid. However, the tension of many is likely to increase. While they still have to keep the bank running, they may soon be fired. Because integration won’t happen without “painful” layoffs on a large scale, as UBS CEO Sergio Ermotti (63) recently warned.

UBS CEO Ermotti will speak at the Swiss Economic Forum in Interlaken BE next Friday. Against the background of the end of the takeover, this look takes on a completely different meaning. It is now important for UBS management to make a quick decision so that the uncertainty about the professional destinies of CS employees ends as soon as possible.

Source :Blick