UBS-Credit Suisse merger doesn't harm competition

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UBS-Credit News

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The Swiss government compelled UBS to acquire Credit Suisse last year to prevent it from collapsing, but the mega-merger has raised concerns over the new bank's size relative to the country's economy.

ZURICH, Switzerland — Switzerland's financial watchdog said on Wednesday that the takeover of fallen bank Credit Suisse by rival UBS will not eliminate competition even though it will strengthen the position of the country's biggest lender.The Swiss government compelled UBS to acquire Credit Suisse last year to prevent it from collapsing, but the mega-merger has raised concerns over the new bank's size relative to the country's economy.

'Finma concluded that the merger of UBS with Credit Suisse will not eliminate effective competition in any market segment, even if UBS has been able to strengthen its market position in certain sub-segments,' it said.The authority, which had been involved in the government-led negotiations for the $3.25-billion merger, had already approved the merger in March 2023.

 

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