Business
UBS to buy Credit Suisse: Swiss govt
Geneva, March 20
Credit Suisse will be taken over by Swiss banking giant UBS, the Swiss federal government has announced.
On Friday, the liquidity outflows and market volatility showed that it was no longer possible to restore the necessary confidence and that a swift and stabilising solution was absolutely necessary, the government was quoted by Xinhua news agency as saying.
"In this difficult situation, the takeover of Credit Suisse by UBS is the best solution for restoring the confidence that has been lacking in financial markets recently, and for best managing the risk to our country and its citizens," the government said on Sunday.
Under the terms of the all-share transaction, Credit Suisse shareholders will receive 1 UBS share for every 22.48 Credit Suisse shares held, equivalent to CHF 0.76/share for a total consideration of 3 billion Swiss francs, UBS said in a statement published on Sunday.
The combination is expected to create a business with more than $5 trillion in total invested assets and sustainable value opportunities, the statement said.
Swiss National Bank (SNB) will provide substantial liquidity assistance to support UBS's takeover of Credit Suisse, said the Swiss central bank in a statement published on Sunday.
This takeover was made possible with the support of the Swiss federal government, the Swiss financial market supervisory authority FINMA and the SNB, the statement said.
With the takeover of Credit Suisse by UBS, a solution has been found to secure financial stability and protect the Swiss economy in this exceptional situation, the statement said.
Both banks have unrestricted access to the SNB's existing facilities, through which they can obtain liquidity from the SNB, the statement said. (1 Swiss franc = $1.08)
6 seconds ago
S. Korea launches presidential committee on medical reform amid protest
1 minute ago
How climate change impacts transmission of malaria
1 minute ago
J&K: Elderly tourist dies of heart failure in Gulmarg
3 minutes ago
How do food emulsifiers increase risk of diabetes?
7 minutes ago
Being self-reliant in war-fighting platforms vital: Army chief
9 minutes ago
3.24 billion people use Meta apps, Threads reaches 150 million monthly active users
10 minutes ago
Indian-origin researcher unravels link between depression and heart disease
10 minutes ago
Dell launches new Alienware gaming laptop in India
11 minutes ago
1 in 4 Indians came across political content that turned out to be deepfake: Report
12 minutes ago
ICEA shares blueprint for India to become a global leader in chip value chain
13 minutes ago
IPL 2024: Sometimes it works, sometimes it doesn't work, says R Sai Kishore on being held back till 19th over
16 minutes ago
PCB reconstitutes national women’s selection committee
16 minutes ago
‘Dreamt of being part of Pro Kabaddi League since season 1’: English players on PKL’s impact internationally