2023-05-03 08:54:35 ET
UBS Group ( NYSE: UBS ) had started mulling over the potential impact of acquiring troubled rival Credit Suisse ( NYSE: CS ) in early December, roughly four months before the Swiss government brokered the historic rescue deal, according to a recent SEC filing.
In February, UBS ( UBS ) judged that buying Credit Suisse ( CS ) -- which was battered over the years by a string of scandals and mounting losses -- "was not desirable for UBS Group AG but that further analysis was necessary in order to prepare for a scenario where Credit Suisse was in serious financial difficulties," the April 26 disclosure said.
As a result of a Swiss government-led negotiation in an effort to stave off a banking crisis in the country, UBS ( UBS ) on March 19 confirmed that it agreed to scoop up CS for $3.25B in a stock-based transaction that also provides downside protection for the larger UBS.
But the merger has not yet closed and still requires approval from regulators in the European Union as well as India, Japan, Mexico and South Korea, all of which are underway, the filing said.
And if "closing conditions have not been satisfied" by December 31, 2023, the deal could fall through. Missing any regulatory approvals would not constitute a breach of such conditions by UBS ( UBS ).
After publishing its first-quarter results last week, UBS ( UBS ) said it expects to close its acquisition of Credit Suisse ( CS ) in Q2, after which UBS plans to reduce the risk and resource consumption of CS's investment banking business.
More on the UBS-Credit Suisse merger
- Credit Suisse And UBS Merger: Not Without Consequences
- UBS Swallows Credit Suisse: More Holes Than Cheese
- Fed approves UBS' acquisition of Credit Suisse's U.S. Business
- Credit Suisse, UBS deal voted down by Swiss parliament's lower house
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UBS weighed rescuing Credit Suisse months before Swiss government arranged deal