Credite Suisse has been in an existential crisis since last year, and now the bank is being taken over by rival UBS. The EU Commission sees no risk of distortion of competition.
The major Swiss bank UBS is allowed to take over its former competitor Credit Suisse. According to the EU Commission, the merger does not raise any competition concerns.
“The newly established company would continue to be under considerable competitive pressure,” said the Brussels authority. There are many different competitors in the relevant markets, including several large global banks as well as specialized providers and local players. The new company will have to measure up to these. There are no conditions for the takeover. Among other things, the EU Commission is examining whether mergers above a certain threshold could distort competition in the European Economic Area.
Both UBS and Credit Suisse are headquartered in Switzerland. After the takeover, the business of the two banks will initially be operated independently of one another. The integration will take place in stages, UBS announced a good two weeks ago.
After numerous scandals, Credit Suisse has been in an existential crisis since the end of last year. She had lost the trust of customers who were withdrawing funds on a large scale. In mid-March, the Swiss government engineered the emergency takeover by UBS. She wanted to prevent a major banking crisis from developing in a nervous market environment after the collapse of the American Silicon Valley Bank.
Source: Stern
