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EU approves bank takeover in Switzerland faster than expected. The European Commission gave its approval on Thursday – and without any conditions.
The merger provides “no reason for competition concerns” in the European Economic Area (EEA), according to the Commission. The activities of Credit Suisse and UBS will overlap in the EEA in all business areas, from wealth management to asset management and investment banking. Nevertheless, the Commission concluded that the merger would not restrict competition. This is because there are enough other competitors.
Americans have not yet agreed
The green light from the EU Commission was a key requirement for the planned bank takeover. UBS and CS were allowed to start their takeover work due to an exception before the EU Commission said yes. The Commission writes that due to “Credit Suisse’s financial difficulties and the resulting threat of financial instability,” the conditions for an exception have been met. Therefore, the risk of “systemic harm to third parties and the banking sector” outweighs the potential threat to competition from the early completion of the bank merger.
Now the US Securities and Exchange Commission has to approve the takeover of CS by UBS.
When asked by Blick, UBS is unwilling to comment on the EU Commission’s approval. According to the previously expressed intentions, the takeover should be legally signed in late May or early June. It will likely take three to four years for the bank takeover to be fully completed, as UBS Chairman Colm Kelleher (65) explained at a performance in London this week.
Source :Blick
I’m Tim David and I work as an author for 24 Instant News, covering the Market section. With a Bachelor’s Degree in Journalism, my mission is to provide accurate, timely and insightful news coverage that helps our readers stay informed about the latest trends in the market. My writing style is focused on making complex economic topics easy to understand for everyone.
