According to an internal document seen by Reuters, UBS has noted at least four nations as being “slow” to provide the regulatory permissions required to complete its acquisition of Credit Suisse, including South Korea and India.

The previously undisclosed letter, dated Sept. 6 and distributed to UBS personnel worldwide, also notes Ireland and Saudi Arabia as “slow jurisdictions” in obtaining licences.

The document, created by UBS following a global examination to evaluate the timetable of regulatory clearances required for the integration of Credit Suisse to be completed, warned that recalcitrant regulators might jeopardise deals like the Swiss bank purchase.

According to the letter, “a single non-cooperative regulator can put the parent bank merger and other transactions in jeopardy,” which will have an effect on other connected integration arrangements.

When UBS encounters “difficult jurisdictions or regulators,” the Swiss bank said in the letter, the uncertainty could result in the winding down of enterprises and the sale of assets.Before it had to be saved in March by a state-engineered acquisition by UBS, Credit Suisse, the second-largest bank in Switzerland, had to endure years of scandals and losses.

Even though UBS finished the acquisition in June, the first global bank bailout since the 2008 financial crisis still requires regulatory approval in the markets where both banks do business.

Credit Suisse chose not to respond. A request for comment from UBS received no response. Reuters’ inquiries for comment from central bank spokespeople in South Korea, India, Ireland, and Saudi Arabia were also not immediately answered.

The numerous regulatory clearances required to close a deal typically cause large merger and acquisition deals to be delayed, and in a very small number of occasions, mergers actually fall through because of concerns voiced by some regulators.

Opportunities and hazards have been created by the first-ever merger of two globally significant systemically important banks for UBS, which has been integrating Credit Suisse’s operations.

UBS stated last month that it anticipated the acquisition to be finished in 2024. The procedure might be completed as soon as May of next year, according to an internal document from the bank.

According to the study, obtaining new permits might take as long as 18 to 22 months in South Korea, two years in Ireland, and as little as 12 months in Saudi Arabia.

It was also stated that it might take the Indian regulator at least six months to authorise the opening of a new branch.A “change in control” approval may never be achieved for Russia, according to UBS, who also stated in the document that this might be a politically motivated choice.

UBS said in May that as of December 31, 2022, it had a total exposure to developing markets worth $18.6 billion, with a $98 million contribution from its exposure to Russia.

According to court records cited by Reuters, a Moscow court last month prohibited UBS and Credit Suisse from selling shares in their Russian businesses.

A government commission analyses all asset transactions involving Western companies, and presidential approval is now required for banks to terminate links with their local businesses under laws established after Russia sent soldiers to Ukraine in February of last year.

Requests for comment from Russia’s central bank and finance ministry were not promptly fulfilled.

UBS said in May that as of December 31, 2022, it had a total exposure to developing markets worth $18.6 billion, with a $98 million contribution from its exposure to Russia.

According to court records cited by Reuters, a Moscow court last month prohibited UBS and Credit Suisse from selling shares in their Russian businesses.

A government commission analyses all asset transactions involving Western companies, and presidential approval is now required for banks to terminate links with their local businesses under laws established after Russia sent soldiers to Ukraine in February of last year.

Requests for comment from Russia’s central bank and finance ministry were not promptly fulfilled.

(Adapted from Reuters.com)