NEW DELHI: In what is being described as the “merger of the century”, UBS Group agreed on Sunday to buy Credit Suisse Group for $2 billion in a landmark government-brokered deal OK.
The deal, aimed at containing a crisis of confidence that threatened to spill over into global financial markets, came after a turbulent day of negotiations between the two lenders.
The two biggest banks for the rich Alpine nation famous for its banking prominence were in negotiations throughout the weekend, with the government, central bank and financial regulators all involved.
The Swiss bank is paying more than $2 billion for its rival, people with knowledge of the matter told Bloomberg.
According to reports, it will be an all-stock deal and priced at a fraction of Credit Suisse’s close on Friday, when the bank was valued at around 7.4 billion francs ($8 billion). . People asked not to be identified because the deal isn’t public yet.
Credit Suisse’s share price fell by 12.78 Swiss francs in February 2021 due to a series of scandals that it could not shake off.
THE Swiss National Bank agreed to offer a $100 billion liquidity line to UBS as part of the deal, according to the Financial Times, which first reported the deal.
Swiss authorities are set to change the country’s laws to circumvent shareholder voting, the newspaper reported, citing people familiar with the matter.
Earlier, reports said UBS had offered to pay up to $1 billion.
However, Credit Suisse felt the offer was too low and would hurt shareholders and employees who have deferred shares.
During this time, the Sunday newspaper newspaper called it “the fusion of the century”.
“The unthinkable becomes reality: Credit Suisse is about to be acquired by UBS”, indicates the weekly.
(With agency contributions)
The deal, aimed at containing a crisis of confidence that threatened to spill over into global financial markets, came after a turbulent day of negotiations between the two lenders.
The two biggest banks for the rich Alpine nation famous for its banking prominence were in negotiations throughout the weekend, with the government, central bank and financial regulators all involved.
The Swiss bank is paying more than $2 billion for its rival, people with knowledge of the matter told Bloomberg.
According to reports, it will be an all-stock deal and priced at a fraction of Credit Suisse’s close on Friday, when the bank was valued at around 7.4 billion francs ($8 billion). . People asked not to be identified because the deal isn’t public yet.
Credit Suisse’s share price fell by 12.78 Swiss francs in February 2021 due to a series of scandals that it could not shake off.
THE Swiss National Bank agreed to offer a $100 billion liquidity line to UBS as part of the deal, according to the Financial Times, which first reported the deal.
Swiss authorities are set to change the country’s laws to circumvent shareholder voting, the newspaper reported, citing people familiar with the matter.
Earlier, reports said UBS had offered to pay up to $1 billion.
However, Credit Suisse felt the offer was too low and would hurt shareholders and employees who have deferred shares.
During this time, the Sunday newspaper newspaper called it “the fusion of the century”.
“The unthinkable becomes reality: Credit Suisse is about to be acquired by UBS”, indicates the weekly.
(With agency contributions)
