Credit Suisse and UBS to merge amid economic uncertainty 

Legal advisors involved in the UBS-Credit Suisse merger:

For UBS: Freshfields Bruckhaus Deringer (‘Freshfields’) is advising UBS Group as global transaction counsel. UBS counsel also include Bär & Karrer  and Davis Polk.  

For Credit Suisse: Walder Wyss acts as Lead Counsel to Credit Suisse on the merger. Counsel also include Homburger, Cleary Gottlieb Steen & Hamilton and Sullivan & Cromwell. 

For further details on the legal team members click here

Credit Suisse and UBS signed a merger agreement, with UBS emerging as the surviving entity. With the combined market capitalization is approximately USD 65 billion, the merger follows negotiations between the two Swiss banks, prompted by the Swiss Federal Department of Finance, the Swiss National Bank, and FINMA, who all requested the transaction to restore confidence in the Swiss economy and banking system.  

Under the terms of the agreement, all Credit Suisse shareholders will receive 1 share in UBS for 22.48 shares in Credit Suisse, with the merger expected to be consummated by the end of 2023. Until then, Credit Suisse will continue to operate in the ordinary course of business and collaborate with UBS on restructuring measures. The Swiss National Bank will provide Credit Suisse with substantial additional liquidity facilities.  

The merger remains subject to customary closing conditions, but an emergency ordinance issued by the Swiss Federal Council means that it can be implemented without the usual shareholder approval.  

Credit Suisse’s Additional Tier 1 Capital, deriving from the issuance of Tier 1 Capital Notes, will be written off to zero. Despite the challenging circumstances leading up to the merger, Axel P. Lehmann, Chairman of the Board of Directors of Credit Suisse, believes it represents the best outcome for both banks.