UBS Rushed Deal to Take Over Troubled Credit Suisse

Switzerland
Uncategorized
Mergers & Acquisitions

(20 March 2023 – Switzerland) UBS has agreed to terms with the Swiss National Bank (SNB) to acquire Credit Suisse after raising its offer to CHF$3 billion, a fraction of the over CHF$7 billion market cap of Credit Suisse as of last week

Swiss authorities will alter the country’s laws to bypass a shareholder vote as they rushed to announce a deal before Monday, averting disaster if the global systemically important bank (G-SIB) failed. The SNB will offer a CHF$100 billion liquidity line to UBS as part of the deal, according to two people familiar with the matter.

Deposit outflows from Credit Suisse topped CHF$10 billion a day last week and customers withdrew CHF$111 billion from the group in Q4 2022.

UBS will dramatically shrink Credit Suisse’s investment bank, so that the combined entity will make up no more than a third of the merged group, two of the people said.

“It was indispensable that we acted quickly and find a solution as quickly as possible given that Credit Suisse is a systemically important bank” SNB President Thomas Jordan commented.

Connect
with East

At East & Partners we work together as one firm to serve our clients wherever they need us.

Our collective knowledge and experience across globalĀ  markets helps us guide clients on the intricacies of each region while enabling cohesion across their global footprint. Apples with apples and pears with pears in complex and demanding financial services markets
globally.

Lookup(Required)
subscribe
This field is for validation purposes and should be left unchanged.