Credit Suisse Japan Wealth Unit To Be Absorbed By UBS-SuMi Venture Post Takeover

The Japanese wealth management joint venture of UBS Group AG UBS and SuMi TRUST Wealth Management Co is set to acquire the wealth management business of Credit Suisse in Japan.

What Happened: This acquisition comes after UBS’s takeover of its Swiss competitor in 2023. The agreement will transfer all of Credit Suisse’s advisors and the wealth management assets they manage in Japan to UBS SuMi. Reuters reported that the merger between UBS and Credit Suisse is expected to be finalized by the end of June.

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Following the acquisition, the partners will adjust their investments in the joint venture to maintain the original ownership structure of UBS 51% and SuMi TRUST Holdings 49%, as stated by UBS.

Why It Matters: This acquisition is a significant step in UBS’s ongoing integration of Credit Suisse. UBS has been proactive in enhancing investor returns during this process, as evidenced by its announcement of a new share buyback program worth up to $2 billion, which is set to commence in 2024. This followed a previous share buyback of up to $1 billion, announced in February 2024, after a better-than-expected fourth-quarter performance.

The acquisition of Credit Suisse’s Japan unit by UBS SuMi also comes after Ant Group Co reportedly outbid Citadel Securities LLC for the acquisition of Credit Suisse’s China unit. This followed a $3 million penalty imposed on Credit Suisse by the Monetary Authority of Singapore in December 2023 to curb financial malpractices.

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