UBS Offers One Billion Dollars To Acquire Credit Suisse Amid Ongoing Banking Crisis

Credit Suisse UBS deal: Credit Suisse is one of the oldest banks in Europe. Although the history of more than 165 years of the bank has become lighter in front of the current banking crisis. Now the condition is that the time has come to sell this bank which has business in many countries of the world. Interestingly, the price offered to it is many times less than the current value.

the offer is so low

Another major Swiss bank UBS (UBS) has offered to buy Credit Suisse. UBS’s offer is up to $1 billion. If you look at this offer made on Sunday morning, it sits around $ 0.27 i.e. 0.25 Swiss franc for each share of Credit Suisse. On the other hand, on Friday, Credit Suisse’s stock closed at 1.86 Swiss Franc. This means that Credit Suisse has been offered less than 7.5 times the current share value.

change in law

According to a latest news from the Financial Times, the offer made by UBS is of an all-share deal between two big banks of Switzerland. The deal is expected to be signed soon. If this deal is implemented, then it will bring many important changes for both the banks. In order to complete this deal quickly, the government of Switzerland is also going to change the law of the country, so that the necessary condition of shareholders’ vote can be avoided for this.

quick fix pressure

Let us tell you that Credit Suisse is facing challenges these days. This bank has come under the grip of the banking crisis that started from America, after which it is facing volatility and a decrease in the confidence of depositors. This bank has been counted among the most important banks in the world for years. This is the reason that there is pressure on the bank to find a quick solution from the regulators and authorities.

history is so old

Credit Suisse is about 167 years old bank. It is being said that if the proposed deal between UBS and Credit Suisse goes through, thousands of people may have to be unemployed. On the other hand, the process of selling it to Silicon Valley Bank is going on in America, for which First Citizens has made an offer. The current banking crisis started with the collapse of Silicon Valley Bank.

read this also: Once there was wealth in billions, now only 236 rupees in the bank account of this fugitive businessman