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Swiss antitrust watchdog reviewing UBS-Credit Suisse deal

UBS
© Keystone / Ennio Leanza

Switzerland’s competition commission is reviewing the effects of the government-brokered takeover of Credit Suisse by UBS Group AG, a spokesman said.

The competition commission plans to submit recommendations to financial regulator Finma by the end of September, according to the spokesman. Finma may then take a decision based on it and on other significant data, he said. 

UBS bought its rival in March in a deal that Swiss regulators approved under emergency rules to prevent a collapse that could have triggered a financial crisis. Finma said at the time that the application of competition rules was subordinate to the financial stability priorities contained in the takeover. 

Competition commission head Patrik Ducrey said in an interview with the Swiss newspaper Finanz und Wirtschaft in April that Finma had nevertheless asked his agency to issue an opinion on the matter. He said at the time that the commission would provide a “comprehensive assessment of the antitrust issues” that the Credit Suisse takeover may create.

It remains unclear whether any remedies that the commission might suggest would be adopted by Finma.

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The deal has created a gigantic bank within Switzerland although UBS has repeatedly said that there continues to be a sufficient level of competition. The combined entity will account for about 35% of domestic deposits and 31% of corporate loans, Citigroup analysts have estimated. 

In May, the EU approved the takeover of Credit Suisse by UBS unconditionally, saying UBS wouldn’t raise any significant competition issues in any of the markets examined. The merger was legally completed on June 12.

UBS will report its first quarterly results since taking over Credit Suisse on Thursday.

©2023 Bloomberg L.P.

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