Could 16 (Reuters) – Credit score Suisse Group AG faces sure restrictions in its skill to do enterprise till its acquisition by rival UBS Group AG (UBSG.S) is accomplished, in keeping with a regulatory submitting on Tuesday.
In sure instances, with out prior UBS approval, Credit score Suisse can not grant a brand new credit score facility or credit score line in an quantity exceeding 100 million Swiss francs ($113 million) to funding grade debtors or greater than 50 million francs to non-investment grade debtors, the submitting confirmed.
As well as, Credit score Suisse can not undertake any capital expenditure of greater than 10 million francs or enter into sure contracts price greater than 3 million francs per yr.
The submitting additionally confirmed Credit score Suisse can not order any “materials amendments” to its worker phrases and situations, together with remuneration and pension entitlements, whereas the merger is underway.
UBS is within the strategy of integrating its main rival following a government-orchestrated takeover in March.
It stated it had put aside $4 billion in provisions for potential litigation and regulatory points because it ready to finish the rescue of its Swiss rival.
UBS estimated a “unfavorable goodwill” of $34.8 billion from its acquisition of Credit score Suisse.
($1 = 0.8889 Swiss francs)
Reporting by Paritosh Bansal; Modifying by Tom Hogue
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