UBS agrees to buy Credit Suisse for over $2 billion

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UBS agrees to buy Credit Suisse for over  billion

Swiss bank UBS has agreed to buy Credit Suisse after raising its offer to more than $2 billion (1.86 billion euros). This is reported by the Financial Times. The agreement is expected to be signed on Sunday evening. The two banks do not want to comment on the report from the newspaper.

UBS has agreed to buy Credit Suisse after raising its offer to more than $2 billion (1.86 billion euros), the Financial Times reports. The agreement is expected to be signed tonight. (ANP / AFP)

The deal would mean that UBS, led by former ING CEO Ralph Hamers, will pay a fraction of the market value at which Credit Suisse ended on Friday. That was 7.4 billion Swiss francs, about $8 billion.

UBS was urged by authorities to close a deal this weekend before the stock market reopens Monday morning. This should reassure investors and prevent panic in the markets. With the merger, the Swiss authorities want to restore confidence in the Swiss banking sector. Previously, UBS would have offered $ 1 billion, but Credit Suisse thought that was too low.

The Financial Times previously reported that the Swiss government was taking emergency measures to enable an accelerated takeover of Credit Suisse by UBS. For example, under Swiss regulations, UBS normally has to give its shareholders six weeks to consider the acquisition. With the emergency measures, that consultation period is skipped.

It is still unclear what the consequences will be for job losses at Credit Suisse. The Swiss bank employees’ union called on Sunday to set up a task force. According to the union, about 17,000 people work for the bank.


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