By Aysu Bicer
LONDON (AA) - The European Commission on Thursday approved the merger between Credit Suisse and UBS, Switzerland's largest bank.
The Commission said in a statement that the transaction would not raise competition concerns in the European Economic Area (EEA).
"Based on its market investigation, the Commission found that the merger would not significantly reduce competition in the markets where their activities overlap within the EEA," it said.
Following the banking crisis that began in the US in March with the sudden collapse of Silicon Valley Bank, UBS moved to acquire Credit Suisse, the country's second-largest bank.
UBS and Credit Suisse made headlines as UBS agreed to acquire Credit Suisse in a government-brokered deal worth over $3.3 billion. The acquisition was prompted by Credit Suisse's sharp decline in market value, which brought the bank dangerously close to bankruptcy.
Within Switzerland, however, criticism emerged regarding Credit Suisse's management and its handling of the bank's finances, and concerns were raised about the potential creation of a megabank resulting from the merger.