(Reuters) – UBS estimates the financial impact of the Credit Suisse takeover at around $17 billion (15.64 billion euros), the Swiss bank said on Wednesday.
UBS estimates the negative impact of fair value adjustments to the combined group’s assets and liabilities at $13 billion.
The group also expects potential litigation and regulatory costs from capital outflows to be $4 billion.
UBS, however, said it would record a one-time gain of $34.8 billion from “negative goodwill” by buying Credit Suisse for a fraction of its book value.
The group clarified that these figures were preliminary and were subject to change.
UBS agreed in March to buy Credit Suisse for 3 billion Swiss francs as part of a merger led by the authorities of the Confederation, forced to intervene and implement a rescue plan to avoid a crisis of confidence in the financial system.
(Report John Revill, Noele Illien, Nupur Anand and Manya Saini, written by Tomasz Janowski and Scott Murdoch; Camille Raynaud)
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