UBS to Acquire Credit Suisse for USD 3.25 Billion

UBS is set to acquire troubled Credit Suisse for USD 3.25 billion. The plan will proceed after crisis talks on Sunday 19 March 2023 aimed to prevent Credit Suisse’s problems from triggering a wider international banking crisis.

The Swiss government said that the deal between the country’s largest bank and the second-biggest lender is essential to prevent irreparable economic turmoil from spreading across the country and beyond.

Discussions about the planned takeover took place at the offices of the Swiss Ministry of Finance in the capital Bern. Moreover, the negotiations are a race against time ahead of the opening of Asian markets on Monday, followed by European markets.

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In a press conference disclosing the details of the acquisition, Swiss President Alain Berset was seen flanked by UBS President Director Colm Kelleher and his colleague from Credit Suisse, Axel Lehman. The Minister of Finance of Switzerland, the Head of the Swiss Central Bank (SNB), and the financial regulator FINMA were also seen attending the press conference.

Berset said that the takeover was, “the best solution to restore the confidence that has been lost in financial markets recently”. He said if Credit Suisse fell, the consequences would be incalculable for the country.

Earlier, Credit Suisse stated that it had issued a statement considering a 3 billion Swiss franc (USD 3.25 billion) merger. Later, Credit Suisse shareholders will exchange 22.48 Credit Suisse shares for one UBS share. The move was welcomed by Washington, Brussels, and London, who argued it would support financial stability.

Source: CNN Indonesia

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