Swiss Bank UBS To Acquire Credit Suisse For Over $3Bln - Statement

Switzerland's largest bank, UBS, said on Sunday that it was going to acquire Swiss-based global investment bank Credit Suisse for 3 billion Swiss francs ($3.2 billion)

MOSCOW (UrduPoint News / Sputnik - 20th March, 2023) Switzerland's largest bank, UBS, said on Sunday that it was going to acquire Swiss-based global investment bank Credit Suisse for 3 billion Swiss francs ($3.2 billion).

Earlier in the day, the Swiss National Bank (SNB) announced the acquisition of Credit Suisse by UBS, adding that it could grant UBS a liquidity assistance loan with privileged creditor status in bankruptcy for a total amount of up to 100 billion Swiss francs ($108 billion) after the takeover, so as to ensure the stability of the country's financial system.

"UBS plans to acquire Credit Suisse ... Under the terms of the all-share transaction, Credit Suisse shareholders will receive 1 UBS share for every 22.48 Credit Suisse shares held, equivalent to CHF 0.76/share for a total consideration of CHF 3 billion," UBS said in a statement.

The acquisition deal is expected to create a business with over $5 trillion in total invested assets and "sustainable value opportunities," according to the bank.

US Treasury Secretary Janet Yellen said in a joint statement with Federal Reserve Board Chair Jerome Powell on Sunday that they welcomed the announcement by the Swiss authorities to support financial stability.

The Swiss government has provided a guarantee of 9 billion Swiss franc (over $9.7 billion) to UBS to cover the potential losses of Credit Suisse.

The brand of Credit Suisse (CS), founded in the mid-19th century, will continue to exist until the closing of the UBS deal, CS Chairman Axel Lehmann said at a press conference on Sunday. After that, decisions regarding the preservation of the brand will be made by the UBS leadership.

On Wednesday, Credit Suisse's share price plunged nearly 30%, sparking concerns about a liquidity crunch. The incident followed the recent collapse of several US financial institutions, including Silicon Valley Bank (SVB).