The Competition Commission will examine the CS takeover. However, she does not play a leading role.
With the takeover of Credit Suisse, UBS becomes a colossus in the Swiss financial center. When the decision was presented on Sunday evening, the impression was created that antitrust law does not have to take the competition into account in the specific case. Patrik Ducrey from the Competition Commission (Weko) defends himself against this accusation. Despite this, his organization does not play the leading role in the investigations.
Finma at the helm
At the media conference on Sunday evening, Marlene Amstad, Chairwoman of the Board of Directors of the Swiss Financial Market Supervisory Authority (Finma), responded to the question of whether the takeover would raise sensitive questions of competition law: “Financial market regulation gives us the competence, in this case – in terms of financial stability – the competitive situation overwrite. We’ve made use of that here.”
This is also new territory for us.
In the case of bank mergers, the Cartel Act stipulates that ComCo must stand back. This is despite the fact that the Competition Commission normally carries out an examination in the case of large mergers. In the case of banks, the Financial Market Authority takes its place.
Legend:
Weko Director Patrik Ducrey: The CS takeover is also something new within the Competition Commission.
Keystone/Peter Schneider
However, this does not mean that an assessment of the CS takeover under competition law will be dispensed with, emphasizes WEKO director Ducrey. Finma carries this out and has to involve the Competition Commission. “The Competition Commission certainly has an important role. It is no longer responsible because Finma has assumed this responsibility. But the Competition Commission will certainly be able to comment on the possible competition law implications of this merger,” said Ducrey.
Swiss premiere for the Competition Commission
Weko will be able to comment on the takeover in the form of a statement. According to Ducrey, this is a Swiss premiere: “It’s also new territory for us, we’ve never done it before.” For this statement, the Competition Commission will come into possession of all essential facts and documents.
The task is then to examine the effects of the merger on the markets in Switzerland. Are there any positions where UBS could become dominant? Weko will then submit a written statement to Finma. This gives them a basis for decision-making at the end of the process.
Patience is required
At the end of the process, Finma will make a decision on the takeover and issue any conditions and requirements for UBS. However, the whole investigation will take time. Ducrey: «It will take several months. The process hasn’t even started yet. That actually only begins when UBS has submitted this merger notification. »
The procedure in Switzerland is also not the only one. It can be assumed that the takeover will also be investigated in other countries, particularly in the EU, the USA and parts of Asia. There are own procedures. So it will take some time for the final procedures to be completed. Thus, the competitive situation remains granted.