UBS expects to complete the acquisition of Credit Suisse within 4 years
UBS confirmed that merging the Credit Suisse business could take 3 to 4 years.
The Chairman of the Board of Directors of Credit Suisse, Axel Lehmann, presented his apology to the shareholders at their last meeting, for his inability to lift the bank from the fall despite the rescue plans that he put in place upon assuming his duties last year, and stressed that what is happening in the markets in terms of turmoil and inflation in addition to the crisis of American banks caused in this painful outcome.
Unfortunately, Credit Suisse in its current form will not exist in the future, Lehmann said.
With these words, Lehman hits the final nail in the coffin of Credit Suisse, whose career spanned 167 years, after UBS acquired it in a historic $3.25 billion deal.
Several factors combined to push the bank to the brink of the abyss, including the accumulated loss of confidence after several scandals and successive losses, then the American banking crisis came like a straw.. while Lehman confirmed that what happened was in the public interest.
And Lehman continued: “In the end, there was no choice but to conclude the deal or declare bankruptcy. The merger had to take place, the conditions must be accepted, and the only solution is to legally restructure the bank, which in the worst case would have led to a complete loss for shareholders, great damage to customers, and severe consequences.” on the global economy and financial markets.
The swift move and the controversial acquisition by the Swiss authorities angered the “Credit Suisse” shareholders, who were disappointed and angry, and appeared at their annual meeting in Zurich for their inability to vote due to the emergency measures taken by the government to complete the deal despite the exorbitant bill it paid, which aimed at Ultimately to allay fears in the global financial system.
Stability was achieved, albeit on the surface, but the fire is still under the ashes.. Credit Suisse wrote off the AT1 bonds worth $17 billion that had not expired yet, so their holders took legal action.
The Swiss Public Prosecutor opened an investigation to examine possible violations of criminal law by the parties overseeing the deal.
The merger and restructuring process will include layoffs of about 11,000 jobs.. Will the repercussions that happen be contained soon, or will they fuel what is under the ashes?