UBS said that Credit Suisse’s domestic business would be run separately until it was legally combined with UBS next year. The two Swiss entities would be fully integrated by 2025, at which point it would end all Credit Suisse’s domestic sponsorship commitments, it added.
Switzerland is preparing for national elections in October and the impact of the merger of two of the country’s biggest companies is a central issue.“Our decision on Credit Suisse [Switzerland] ... follows a thorough evaluation of all available options,” UBS chief executive Sergio Ermotti said on Thursday. “Our analysis clearly shows that full integration is the best outcome for UBS, our stakeholders and the Swiss economy.
The $29 billion accounting gain – known as negative goodwill – reflects the difference between the value of Credit Suisse’s assets on its books and the lower price UBS paid for them. Analysts had expected an even higher gain – of $33 billion – but Credit Suisse incurred losses this year and UBS recorded writedowns to some Credit Suisse assets.