TechFlow news: On the 19th, the Swiss federal government announced that Credit Suisse will be acquired by UBS Group.
At a press conference held that evening, the Swiss federal government stated that recent liquidity outflows and market volatility indicate it is no longer possible to restore the necessary confidence, and taking swift, stabilizing measures is "absolutely necessary." "The solution is the acquisition of Credit Suisse by UBS Group."
The Swiss federal government said that in light of the current difficult situation, UBS Group's acquisition of Credit Suisse is the best solution to restore confidence currently lacking in financial markets, as well as the optimal way to manage risks facing Switzerland and its citizens.
On the same day, UBS Group released a statement saying that under the all-share transaction terms, each holder of 22.48 shares of Credit Suisse will receive one share of UBS Group, equivalent to 0.76 Swiss francs per share (1 USD ≈ 0.9252 Swiss francs), with a total consideration of 3 billion Swiss francs (3.3 billion USD). The deal will create a company with more than 5 trillion USD in invested assets.
The announcement said the acquisition was carried out with support from the Swiss federal government, the Swiss Financial Market Supervisory Authority (FINMA), and the Swiss National Bank. Both banks can access liquidity support through the Swiss National Bank.
On March 19, the Swiss National Bank issued a statement saying it will provide liquidity assistance to support UBS Group’s acquisition of Credit Suisse.
Credit Suisse, founded in 1856, has significant influence in global capital markets. In February this year, Credit Suisse announced a net loss of 7.3 billion Swiss francs for 2022, marking its second consecutive annual net loss. On March 14, Credit Suisse reported "material weaknesses" in its internal controls over financial reporting. Original link
