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UBS said Monday that it has finalized its takeover of Credit Suisse, ending a months-long saga that saw the near-collapse of one of Switzerland’s biggest financial institutions.
The bank announced that completion in an open letter to Swiss, German-language daily newspaper, NZZ and other international publications, describing the deal as “the beginning of a new, historic chapter.”
UBS
UBS,
UBSG,
agreed to buy its rival for an initially announced 3 billion francs ($3.3 billion) after Credit Suisse
CS
CSGN,
was unable to stem outflows from its wealthy clients.
UBS said Friday that it has signed a loss protection agreement with the Swiss government covering up to 9 billion francs ($10 billion) of losses once the takeover of Credit Suisse is completed.
The closing puts an end to Credit Suisse’s 167 years of independence, and its shares will stop trading on Monday. Credit Suisse will continue to be run as its own bank underneath the UBS umbrella, though the plan is to vastly scale it back, particularly in investment banking.
UBS said it may book a gain of $34.8 billion on the deal.
— Steve Goldstein contributed to this story
