UBS completes takeover of Credit Suisse in deal meant to stem global financial turmoil

UBS said yesterday that it has completed its takeover of embattled rival Credit Suisse, nearly three months after the Swiss government hastily arranged a rescue deal to combine the country’s two largest banks in a bid to safeguard Switzerland’s reputation as a global financial center and choke off market turmoil.

A statement from the bank said that “UBS has completed the acquisition of Credit Suisse today, crossing an important milestone.”

UBS had said last week that it expected to complete the acquisition worth 3 billion Swiss francs ($3.3 billion) as early as Monday — which will be the last trading day for Credit Suisse shares on the Swiss stock exchange. Credit Suisse will also no longer be traded on the New York Stock Exchange.

It’s a pivotal moment for the two Zurich-based rivals, whose combination has raised concerns about thousands of expected job losses, drawn rebukes and lawsuits over the terms of the deal, and stirred fears about the impact of creating a Swiss megabank that would be too big to fail.

The Swiss government orchestrated the rescue of Credit Suisse over a weekend in March after the lender’s stock plunged and customers quickly pulled out their money, fearing its collapse could further roil global financial markets in the wake of the failure of two U.S. banks. MDT/AP