CCI Approves Acquisition of Credit Suisse Group AG by UBS Group AG

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Aug 30, 2023

CCI Approves Acquisition of Credit Suisse Group AG by UBS Group AG

On May 18, 2023, the CCI approved the acquisition of Credit Suisse Group (‘Credit Suisse’) AG by UBS Group AG (‘UBS’) (together, “Parties”) by way of an absorption merger, with UBS being the surviving legal entity (‘Proposed Combination’^[1]). As part of the absorption, all Credit Suisse’s assets, liabilities, and contracts will be transferred to UBS in their entirety and Credit Suisse will cease to exist as a separate legal entity by operation of law, upon completion of the Proposed Combination. Therefore, UBS will acquire complete control over Credit Suisse post completion of the Proposed Combination.

Parties to Proposed Combination

UBS is a multinational investment bank and financial services company founded and based in Switzerland, and active globally. UBS is the ultimate controlling entity for the group. UBS’ businesses comprise wealth management, asset management, investment banking services, and retail and corporate banking. In India, UBS’s business is primarily focused on brokerage services.

Credit Suisse is a multinational investment bank and financial services company founded and based in Switzerland. Credit Suisse is active globally and its businesses comprise wealth management, asset management, investment banking services, and retail and corporate banking. In India, Credit Suisse’s businesses comprise wealth management, investment banking, and financial market services.

Relevant Market

With respect to overlaps, the parties identified the ‘Relevant Market’ as “market for brokerage services in India” which includes the segments of (i) brokerage services in cash/equity segment in India; and (ii) brokerage services in equity derivatives segment in India.

The CCI decided to assess the Proposed Combination in the Relevant Market as identified by the Parties, however, it left open the exact delineation of the market.

Competitive Assessment

The CCI observed that:

i. The combined market share of the Parties as well as the incremental market share in the Relevant Market (including sub-segments) is in the range of [0-5] %, both in terms of volume and value.

ii. The markets contain the presence of other significant players which will continue to pose competitive constraints, post-combination.

Accordingly, the CCI approved Proposed Combination, holding that it was unlikely to have any AAEC in India.

[1] C-2023/04/1024.

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