UBS, Switzerland’s largest bank, will buy Credit Suisse, which is experiencing a crisis

UBS has announced that an agreement has been reached on the acquisition of Credit Suisse. The acquisition will add significant sustainable value to UBS shareholders and strengthen the bank’s global asset manager position, the statement said.

The purchase negotiations were initiated by the Swiss Ministry of Finance, the Swiss Financial Markets Regulatory Authority (FINMA) and the Swiss Central Bank (SNB), indicating that the purchase was supported by Swiss official institutions.

Credit Suisse shareholders will receive 1 UBS share for every 22.48 shares they own, which is 0.76 Swiss francs per share, and the total purchase price will be 3 billion Swiss francs, the statement said.

In the SNB’s statement on the issue, it was stated that a significant amount of liquidity assistance would be provided to support UBS’s acquisition of Credit Suisse.

With the acquisition of Credit Suisse by UBS, financial stability will be guaranteed and the Swiss economy will be protected, the statement said, adding that both banks have unlimited access to the SNB’s facilities and can obtain liquidity from here.

The statement pointed out that Credit Suisse and UBS may receive liquidity assistance loans up to a total of 100 billion Swiss francs depending on the Federal Council’s Emergency Regulation, noting that providing a significant amount of liquidity will provide both banks with access to the necessary financing, which will contribute to the stability of the financial system.