The acquisition of Credit Suisse by UBS as part of an emergency rescue takeover is expected to be completed as early as 12 June 2023.
Credit Suisse ranks in the top 40 banks for the year 2021 in the global shipping finance, in accordance with recent research reports, and is the world’s 10th largest shipping bank, and big financier for Greek shipowners.
The takeover will see Credit Suisse shareholders receive one UBS share for every 22.48 outstanding shares they held. The UBS Group will assume all Credit Suisse Group AG assets and liabilities.
The completion is subject to the registration statement, which covers shares to be delivered, being declared effective by the US Securities and Exchange Commission, and to satisfaction, or waiver by UBS, of other remaining closing conditions.
Upon completion, Credit Suisse shares and American Depositary Shares (ADS) will be delisted from the SIX Swiss Exchange and the New York Stock Exchange. The exchange of Credit Suisse ADS may be subject to certain fees, as UBS informs today.
The acquisition still brings questions over the fate of Credit Suisse´s shipping portfolio and the activities of the bank.
Bank ship finance for Greek shipping has increased during 2021 by 5.6%. Credit Suisse continued to hold the top position in the Greek ship finance market as of end 2021. “Credit Suisse remains in the top position with a further portfolio reduction of 12.5%, following the portfolio reduction of 16.88% in 2020,” in accordance with Petrofin analysis of the bank loan portfolios to Greek shipping, as of 31st December 2021.
The announcements so far, however, have not clarified the landscape for shipping financing, but they give some encouraging signs. Credit Suisse appeared reassuring.
UBS Group CEO Sergio P. Ermotti said recently that “this is a pivotal moment for UBS, Credit Suisse and the entire banking industry. Together we will solidify and represent the Swiss model for finance around the world, one that is capital-light, less reliant on taking risk and anchored by stability and high-touch service. This transaction will allow us to offer attractive returns to our shareholders and give us capacity to further invest and grow.”
The transaction is expected to create a business with more than $5 trillion in total invested assets.