Swiss financial market regulator FINMA completes the antitrust review process for the merger of UBS and Credit Suisse without imposing conditions and obligations.
After extensive review, it concluded that the merger of UBS and Credit Suisse would not eliminate effective competition in any market segment.
FINMA approved the merger of the two major banks in advance on March 19, 2023 under the Cartel Act.
This measure was in the interest of protecting creditors and was necessary to prevent further damage to the Swiss financial center and international financial markets. FINMA’s immediate action was in accordance with the statutory procedure laid down for such cases.
According to this, FINMA replaces the Competition Commission (COMCO) in cases of mergers that it deems necessary for reasons related to the protection of creditors. This allows it to prioritize the interests of creditors.
In its audit process, FINMA concluded that the merger of UBS with Credit Suisse would not eliminate effective competition in any market segment, even if UBS managed to strengthen its market position in certain sub-sectors. Therefore, the requirements under merger control legislation for merger intervention are not met and FINMA has completed the control process without imposing conditions, obligations or further reviews.
FINMA had already informed COMCO prior to the announcement of the merger of the two banks that it would take responsibility for carrying out the competitive assessment, as required by law. Since then he has been in close contact with COMCO. COMCO provided continuous support to FINMA throughout the process. Extensive market analyzes were jointly carried out and numerous statements from competitors, associations and specific customers were evaluated. The extensive market research and detailed opinion submitted by COMCO gave FINMA a sufficient basis for making a final decision.
FINMA’s specific responsibility in this matter under the Cartel Act ends with the completion of the audit process. FINMA published both its decision and COMCO’s opinion today, thereby creating transparency about the content of the review and its process. FINMA will continue to closely monitor the integration of Credit Suisse into UBS from its supervisory perspective.