UBS Confirms Acquisition of Credit Suisse for $3B

banner-image

UBS Group, the biggest bank in Switzerland, signed a merger agreement with Credit Suisse, its struggling rival. As part of an “emergency legislation,” the former will pay $3.25 billion to close the purchase, which is 60% of what Credit Suisse was worth at the end of the prior week.

Colm Kelleher, chairman of UBS, said: 

“This acquisition is attractive for UBS shareholders but, let us be clear, as far as Credit Suisse is concerned, this is an emergency rescue.”

According to an earlier Financial Times article that cited a source familiar with the situation, UBS had accepted the purchase of Credit Suisse for more than $2 billion.

Credit Suisse Acquired for $3.25B 

However, a more recent statement from UBS has disclosed that the entire consideration for the acquisition is roughly 3 billion Swiss francs, or $3.25 billion. That still represents a significant discount to Credit Suisse’s market value of $8 billion as of March 17. 

According to sources, the Swiss National Bank agreed to provide UBS with approximately $100 billion in liquidity as part of the agreement.

As per the agreement’s terms and conditions, each Credit Suisse shareholder will get 1 share of UBS in exchange for 22.48 shares of Credit Suisse. 

Axel Lehmann, Chairman of the Board of Directors at Credit Suisse noted: “Given recent extraordinary and unprecedented circumstances, the announced merger represents the best available outcome.”

Credit Suisse is Not the Only One

In addition, Bitcoin’s price has been rising since the news. Its price has soared by around 70% since the beginning of 2023. This is happening in the midst of the worldwide banking crisis. Balaji Srinivasan, the former CTO of Coinbase, recently bet $2 million on the price of Bitcoin hitting $1 million in 90 days because he believes hyperinflation is taking place. 

Also, many consumers have been anxious as a result of the failure of significant banks, namely Silvergate Capital, Silicon Valley Bank, and Signature Bank.

Immunefi, the Web3.0 bug bounty and security services platform, has exceeded..

Japanese gaming giant Konami has partnered with Avalanche to enhance the..

MicroStrategy has expanded its total Bitcoin holdings with the purchase of..

ads-image ads-image