UBS Group doubled down on its offer to buy rival Credit Suisse for nearly $2 billion on March 19, in a historic deal for Switzerland’s two largest banks, according to Reuters. Financial Times report
UBS had previously made a $1 billion offer on March 18, but the deal was rejected by Credit Suisse’s board, with FT sources saying the $1 billion offer was “very low”. That compares with the bank’s market capitalization as of March 17, which was nearly $8 billion. followData from Companies Market Cap
and to close the deal Swiss authorities also agreed to change the country’s regulations to avoid a shareholder vote and announced the deal over the weekend before the market opened.
In addition, as part of the agreement The Swiss National Bank (SNB) will provide more than $100 billion worth of USB liquidity. According to FT, the deal was heavily influenced by the SNB and the Swiss Financial Market Supervisory Authority (FINMA), and it is said that US and European regulators have approved the deal. already A coordinating statement will be released on Sunday.
The Swiss authorities have also prepared other options. If Credit Suisse’s deal with UBS failed over the weekend.
Credit Suisse’s rescue plan will include losses to bondholders. The move prompted European regulators to worry that it would undermine investor confidence in the European financial sector.
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