Industry Updates

UBS to acquire Credit Suisse in $3.25bn deal

Brokered by the Swiss National Bank and FINMA

Tom Eckett

UBS banks

UBS has agreed to acquire Credit Suisse in a historic $3.25bn deal between Switzerland’s two largest banks.

The Swiss National Bank (SNB), which was responsible alongside for FINMA for brokering the deal between the two firms, confirmed the takeover.

UBS will pay approximately CHF0.76 a share for its Swiss rival which brings an end to the 167-year-old bank’s history.

The SNB will provide a liquidity loan of up to $107.8bn to UBS as part of the deal which will create a bank with $5trn invested assets.

“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 SNB said in a statement.

Colm Kelleher, chairman of UBS, said: “As far as Credit Suisse is concerned, this is an emergency rescue.”

Swiss President Alain Berset said at a press conference on Sunday: “The liquidity outflows and market volatility showed it was no longer possible to restore confidence.”

The move comes after Credit Suisse was forced to borrow $54bn from the SNP in a bid to shore up liquidity amid a collapse in the firm’s share price.

The deal creates an ETF business with €82.5bn assets under management (AUM), the fourth largest in Europe ahead of Vanguard, according to data from Bloomberg Intelligence.

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