UBS Swiss Bank Acquires Credit Suisse Bank

UBS, a bank in Switzerland, is set to acquire Credit Suisse, another Swiss bank, for $3.2 billion. This acquisition is occurring after Credit Suisse was facing severe financial troubles, and if the bank collapsed, the country’s economy would go with it. This led to the Swiss National Bank loaning more than $100 billion to help with the acquisition.

“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,” read a statement from the Swiss National Bank. Shareholders in Credit Suisse will receive 1 share of UBS stock for every 22.48 shares of Suisse they hold.

“This acquisition is attractive for UBS shareholders but, let us be clear, as far as Credit Suisse is concerned, this is an emergency rescue. We have structured a transaction which will preserve the value left in the business while limiting our downside exposure,” said UBS Chairman Colm Kelleher in a statement.

“We are committed to making this deal a great success. There are no options in this” Kelleher added.

“This is absolutely essential to the financial structure of Switzerland and … to global finance.”

This acquisition comes just days after Credit Suisse took out a $50 billion loan from the Swiss bank. This is the third large bank to collapse in the past two weeks. Earlier this month, the Silicon Valley Bank, and Signature Bank both went out of business.

Credit Suisse and UBS are estimated to hold over $5 trillion in assets together.