Ubs To Buy Credit Suisse In A Deal Brokered By Swiss Government For More Than $2 Billion
- Posted on March 20, 2023
- By Akta Yadav
- 214 Views
Credit Suisse :-
In a government-brokered deal, UBS Group has agreed to buy the debt-ridden Credit Suisse. Its rival, UBS is spending more than $2 billion. In the all-share deal, UBS valued Credit Suisse Group for one-fourth of its closing price, which was roughly $8 billion.
According to reports, UBS Group would pay more than 0.50 francs a share in its own stock, which is nearly 73% less than the closing price of Credit Suisse of 1.86 francs. However earlier, UBS had made an offer of roughly $1 billion (or 0.25 francs per share) which the company rejected.
The 167-year-old banking system was greatly affected by the failure of American lenders Silicon Valley Bank and Signature Bank during the past week. Due to chaos within American banking institutions, Credit Suisse saw a decline in its banking equities and prompted authorities to enact emergency steps to keep institutions afloat.
The Swiss National Bank reportedly provided UBS Group with roughly $100 billion in liquidity as part of the deal to help them take over the activities of the rival group. One of the biggest wealth managers in the world, Credit Suisse's failure would have an enormous impact on the whole financial system.
Credit Suisse has suffered in recent years due to a series of scandals, managerial changes and legal problems. Clients withdrew more than $100 billion in assets in the last three months due to its weakening financial stability.
For more updates keep visiting our website www.topstoriesworld.com where we provide unbiased, true, and top stories of the world.