The Competition Commission of India (CCI) has given its nod for the proposed merger of Credit Suisse Group with UBS Group. As per updates, the approval came on Thursday from CCI.
In the official order, CCI said that in the proposed acquisition of Credit Suisse entails UBS as the surving legal entity. It reads, “The proposed combination entails UBS’s proposed acquisition of Credit Suisse by way of an absorption merger with UBS being the surviving legal entity (Proposed Combination)... A detailed order will follow..”
CCI’s nod for Credit Suisse and UBS merger is significant as in India, UBS’s business is primarily focused on brokerage services and Credit Suisse on wealth management and investment banking services. Both being multinational investment banks and financial services companies based out of Switzerland, the presence in India also becomes significant and hence, the regulator’s approval paramount.
Troubled Credit Suisse made headlines soon after the Silicon Valley Bank (SVB) crisis surfaced and caused havoc in the banking industry. Hence, soon after, the Swiss National bank announced that UBS would buy Credit Suisse and save the remaining.
UBS only reportedly agreed to buy rival Credit Suisse as the latter was down to the bottom due to massive withdrawl of money by many customers. It happened as the bank was allegedly involved in many corporate collapses and hence, the acquisition, as reported, became essential for its survival.