UBS agrees to acquire Credit Suisse for $3.2 billion.
UBS Chairman Colm Kelleher (R) shakes hands with Credit Suisse chairman Axel Lehmann (L) after a press conference following talks over Credit Suisse in Bern on March 19, 2023. Fabrice Coffrini | Afp | Getty Images
On March 20, 2566, CNBC reported that UBS (UBS), Switzerland's largest bank, has agreed to acquire Credit Suisse for 3 billion Swiss francs (US$3.2 billion), with the Swiss government's financial regulator taking part. Make this historic agreement.
“The takeover of Credit Suisse by UBS represents a solution to preserve financial stability and protect the Swiss economy in these exceptional circumstances,” a statement from the Swiss central bank said. which noted that the central bank had been working with the Swiss government and the Swiss financial market regulator to bring about the combination of the country's two largest banks.
The acquisition was made jointly by the Central Bank of Switzerland, the Swiss government and the Swiss government. and the Swiss Financial Market Supervisory Authority. The Swiss central bank has pledged up to 1 billion francs ($1.08 billion) in loans, while the Swiss government has approved up to $9 billion in guarantees. The objective is to reduce risks to UBS.
Under the terms of the deal, Credit Suisse shareholders will receive one UBS share for every 1 Credit Suisse shares they hold.
“This acquisition is attractive to UBS shareholders, but let us be clear. As far as Credit Suisse is concerned, this is an emergency bailout. We have structured the transaction which preserves residual value in the business while limiting our exposure to downside,” UBS Chairman Colm Kelleher said in a statement.
