Switzerland's largest bank UBS to buy Credit Suisse for $3.2 billion

The Swiss National Bank announced (.pdf) on the merger of the two largest and oldest banks in the country – UBS and Credit Suisse. The deal is valued at three billion Swiss francs ($3.23 billion), Reuters reports. It is expected to close by the end of 2023.

“Today, UBS announced the takeover of Credit Suisse. This takeover was made possible with the support of the Swiss Federal Government, the Swiss Financial Market Supervisory Authority FINMA and the Swiss National Bank,” the regulator said.

The Swiss National Bank also said that both banks will be able to borrow up to CHF 100 billion to maintain liquidity.

As a result of the transaction, a solution was found “to ensure financial stability and protect the Swiss economy in this exceptional situation,” the regulator said in a statement.

In mid-March, shares of the second largest Swiss bank, Credit Suisse, fell more than 30% during trading in Switzerland. The fall in Credit Suisse quotes against the backdrop of the bankruptcy of Silicon Valley in the United States caused concern among investors about the stability of the global banking system.

According to Reuters, Swiss regulators were forced to intervene and arrange a deal to sell Credit Suisse in order to prevent the crisis of confidence in the bank from spreading to the financial system.

Disclaimer: If you need to update/edit/remove this news or article then please contact our support team Learn more

Deborah Acker

I write epic fantasy; self-published via KDP. Devoted dog mom to my 10 yr old GSD, Shadow! DM not a priority; slow response at best #amwriting #author.

Leave a Reply