UBS plans to acquire Credit Suisse as part of an emergency rescue takeover. Credit Suisse ranks in the top 40 banks for the year 2021 in the global shipping finance, in accordance with recent research reports.
Credit Suisse is the world’s 10th largest shipping bank, and big financier for Greek shipowners.
Now the takeover by UBS, raises questions about the next day in the activities of the bank, and of Credit Suisse´s shipping portfolio.
Shipping sources from the banking sector mention that it cannot be given specific information as the two sides are now in the beginning of the integration planning process and time is needed in order to finalize the specific details.
Until the completion of the merger, which is subject to customary closing conditions and is expected to be consummated by the end of 2023, Credit Suisse declares that will continue to conduct its business in the usual way, in close collaboration with UBS.
The two sides came into a merger agreement on Sunday, 19 March, 2023 with UBS being the surviving entity.
Bank shipfinance for Greek shipping has increased during 2021 by 5.6%. Credit Suisse continued to hold the top position in the Greek shipfinance 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.
“Credit Suisse continues to operate in the ordinary course of business and implement its restructuring measures in collaboration with UBS. The Swiss National Bank will grant Credit Suisse access to facilities that provide substantial additional liquidity,” says the bank in its announcement.
UBS also mentioned that the transaction creates significant sustainable value for UBS shareholders and a leading global wealth manager with USD 5 trillion of invested assets across the Group. Also clarified that the bank remains “strongly capitalized well above its target of 13% and committed to progressive cash dividend policy.”