UBS said on Monday it expected to complete its takeover of rival Credit Suisse AG "as early as June 12," which would create a Swiss banking giant with $1.6 trillion in assets and liabilities.

"UBS expects to complete the acquisition of Credit Suisse as early as June 12, 2023. At that time, Credit Suisse Group will be merged into UBS Group," said the official announcement on Monday.

"Completion is conditioned upon a registration statement declared effective by the SEC, which includes the shares to be delivered, and the satisfaction or waiver of other remaining closing conditions by UBS."

Upon completion of the merger, Credit Suisse's shares on the Swiss stock exchange and its American depositary shares on the New York Stock Exchange will be delisted. If the merger is completed before U.S. trading hours on June 12, NYSE ADSs will be delisted the same day, while SIX shares will be delisted on June 13.

The announcement further elaborated that Credit Suisse shareholders will receive one UBS share for every 22.48 outstanding shares they hold. However, trading ADRs on the NYSE "may incur certain fees."

Credit Suisse received a violation notice from the NYSE last week because the price of listed ADRs was below the "average closing price of at least $1 over a consecutive 30-day trading period." In response, Credit Suisse said it "expects that this deficiency will be corrected following the completion of the UBS acquisition".

The Birth of a Swiss Banking Giant

UBS agreed to buy its main rival Credit Suisse for 3 billion Swiss francs on March 19, a deal pushed by the Swiss government to avert the recent crisis in the United States that led to multiple bank failures. Controversial Credit Suisse has lost the trust of investors, sending its shares tumbling and making buyouts to stave off collapse.

The merger would make UBS one of the world's largest banking groups. However, it will absorb losses from Credit Suisse, which reported an adjusted pre-tax loss of 1.3 billion Swiss francs in the first quarter of 2023. Also, UBS’ net profit fell 52% to $1.03 billion in the first quarter due to a $665 million legal requirement.