UBS agrees to buy Credit Suisse for $2 billion: report

The two largest banks in the wealthy Alpine nation famed for its banking prominence have been in negotiations throughout the weekend, with the government, the central bank and financial regulators all involved.

UBS has agreed to take over its troubled Swiss rival Credit Suisse after doubling its offer to $2 billion, the Financial Times reported amid urgent talks on March 19, 2023 aimed at sparing the embattled bank from a bloodbath when the markets reopen.

The two largest banks in the wealthy Alpine nation famed for its banking prominence have been in negotiations throughout the weekend, with the government, the central bank and financial regulators all involved.

The Financial Times newspaper, which was the first on March 17 to report the prospect of Switzerland's biggest bank swallowing up Credit Suisse, said UBS had agreed to buy it for $2 billion, with its fellow Zurich-based lender having spurned an earlier offer of $1 billion.

The FT said shareholders would get 0.50 Swiss francs ($0.54) per share, with the deal to be done on March 19 before the markets open in Asia.

After suffering heavy falls on the stock market last week, Credit Suisse’s share price closed on March 17 at 1.86 Swiss francs, with the bank worth just over $8.7 billion.

Credit Suisse’s share price has tumbled from 12.78 Swiss francs in February 2021 due to a string of scandals that it has been unable to shake off.

UBS was being urged by the authorities to get a deal over the line before the stock exchange reopens at 8 a.m. GMT (1.30 p.m. IST) on March 20, in a bid to reassure investors and avoid a wave of contagious panic on the markets.