UBS to buy Credit Suisse in Swiss-assisted bid to calm markets

Record ID: 1716269

  • Title: UBS to buy Credit Suisse in Swiss-assisted bid to calm markets
  • Date: 19th March 2023
  • Summary: HELSINKI, FINLAND (FILE - NOVEMBER 12, 2020) (REUTERS) VARIOUS OF PEOPLE IN CITY CENTRE ESPOO, FINLAND (FILE - NOVEMBER 10, 2020) (REUTERS) VARIOUS OF SCHOOL YARD HELSINKI, FINLAND (FILE - NOVEMBER 12, 2020) (REUTERS) LAPINLAHTI BAY PUBLIC SAUNA BUILDING STUDENT FROM HELSINKI, ATSO AIROLA, IN SAUNA AIROLA TAKING A SWIM AFTER SAUNA ROVANIEMI, FINLAND (FILE - OCTOBER 15, 202
  • Embargoed: 2nd April 2023 21:35
  • Keywords: Colm Kelleher Credit Suisse Swiss government Switzerland UBS bank takeover
  • Location: BERN, SWITZERLAND
  • City: BERN, SWITZERLAND
  • Country: Switzerland
  • Topics: Company News Markets,Europe,Economic Events
  • Reuters ID: LVA003857319032023RP1
  • Aspect Ratio: 16:9
  • Story Text: UBS will buy rival Swiss bank Credit Suisse for 3 billion Swiss francs ($3.23 billion) and agreed to assume up to $5.4 billion in losses, in a shotgun merger engineered by Swiss authorities on Sunday (March 19) to avoid further market-shaking turmoil in global banking.
    Swiss regulators were forced to step in and orchestrate a deal to prevent a crisis of confidence in Credit Suisse spilling over into the broader financial system. The deal is expected to close by the end of 2023.
    The Swiss banking marriage follows efforts in Europe and the United States to support the sector since the collapse of U.S. lenders Silicon Valley Bank and Signature Bank.
    The Swiss finance minister said the bankruptcy of a globally important bank would have created irreparable consequences for financial markets.
    It was not yet clear if the deal is enough to restore trust in lenders around the world. The first indication could come when stock markets open in Asia, Australia and New Zealand.
    The Swiss central bank said the deal includes 100 billion Swiss francs ($108 billion) in liquidity assistance for UBS and Credit Suisse.
    The effect on jobs was not immediately clear.
    UBS Chair Colm Kelleher said during a press conference he was “pleased” and that “UBS will remain rock solid.”
    Credit Suisse shareholders will receive 1 UBS share for every 22.48 Credit Suisse shares held, equivalent to 0.76 Swiss francs per share for a total consideration of 3 billion francs, UBS said.
    (Production: Cecile Mantovani, Michele Sani)
  • Copyright Holder: REUTERS
  • Copyright Notice: (c) Copyright Thomson Reuters 2023. Open For Restrictions - http://about.reuters.com/fulllegal.asp
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