UBS in talks to acquire Credit Suisse
UBS is in talks to acquire all or part of Credit Suisse, with the boards of Switzerland’s two largest lenders set to meet separately over the weekend to reflect on Europe’s most momentous banking merger since the financial crisis, according to several people informing the talks became.
The Swiss National Bank and regulator Finma are orchestrating the talks to boost confidence in the country’s banking sector, the people said. Her intervention comes days after the central bank was forced to provide Credit Suisse with an emergency credit line of 50 billion francs ($54 billion).
However, that failed to stem a fall in its share price, which fell to a record low after its largest investor ruled out providing more capital and its chairman admitted the exodus of wealth management clients was continuing.
UBS has a market value of $56.6 billion, while shares in Credit Suisse closed at $8 billion on Friday.
Swiss regulators told their US and UK counterparts on Friday night that the merger of the two banks was their “Plan A” to stem a loss of confidence in Credit Suisse, a person familiar with those discussions told the FT.
A number of different options are being discussed between the two banks, another person told the FT, adding that both sides are trying to assess regulatory restrictions in different jurisdictions. This person added that UBS also analyzes the potential risks that a transaction could pose to their own business.
The central bank’s focus is on agreeing on a simple, no-hassle solution before markets open on Monday, one of the people said. There is no guarantee that a deal will go through.
Credit Suisse declined to comment. UBS declined comment, as did the Bank of England and the Federal Reserve. The Swiss National Bank did not respond to requests for comment.
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https://www.ft.com/content/17892f24-4ca0-417f-9093-289b019a0852 UBS in talks to acquire Credit Suisse