UBS Identifies South Korea, India, Others As Delayed In Approving Credit Suisse Deal

UBS Group AG has identified several countries, including South Korea and India, as being slow in granting the regulatory approvals required to finalise its takeover of Credit Suisse, according to an internal document seen by a media house.

Additionally, the document, dated 6 September and circulated among global staff, revealed that UBS had also characterised Ireland and Saudi Arabia as “slow jurisdictions” in terms of granting licenses. This assessment was made following a global review aimed at assessing the timeline for obtaining the necessary regulatory approvals for the merger.

The document underscored that uncooperative regulators could pose a risk to transactions, including the merger of the two Swiss banks. Furthermore, the uncertainty surrounding regulatory approvals might lead to business closures and asset sales when dealing with challenging jurisdictions or regulators.

Credit Suisse, Switzerland’s second-largest bank, faced a series of scandals and losses before being rescued in March through a state-engineered takeover by UBS.

While UBS successfully completed its takeover of Credit Suisse in June, it still requires approvals from regulators in markets where both banks operate for the deal to be legally finalised. This takeover marked the first rescue of a global bank since the 2008 financial crisis.

As of now, UBS and Credit Suisse have not provided comments in response to Reuters’ inquiries. Similarly, spokespeople for central banks in South Korea, India, Ireland, and Saudi Arabia have yet to respond to requests for comment from a media house.