Swiss Biggest Bank UBS to Acquire Credit Suisse for Over $3Bln

A Swiss flag is seen behind a sign of Swiss bank giant UBS on June 11, 2013 in Basel.InternationalIndiaAfricaMOSCOW 19 (Sputnik) – Switzerland’s biggest bank, UBS, said on Sunday that it was going to acquire Swiss-based global investment bank Credit Suisse for 3 billion Swiss francs ($3.2 billion). Earlier in the day, the Swiss National Bank announced the acquisition of Credit Suisse by UBS, adding that it would provide necessary assistance for the deal. “UBS plans to acquire Credit Suisse … Under the terms of the all-share transaction, Credit Suisse shareholders will receive 1 UBS share for every 22.48 Credit Suisse shares held, equivalent to CHF 0.76/share for a total consideration of CHF 3 billion,” UBS said in a statement. The acquisition deal is expected to create a business with over $5 trillion in total invested assets and “sustainable value opportunities,” according to the bank. On Wednesday, Credit Suisseā€™s share price plunged nearly 30%, sparking concerns about a liquidity crunch. The incident followed the recent collapse of several US financial institutions, including Silicon Valley Bank.It was previously reported that UBS was considering buying Credit Suisse for $1 billion. Then, later on Sunday, it was reported by the Financial Times that the offer was raised to over $2 billion. That offer seemingly increased again before the announcement of the deal was made.

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