Photo taken on March 16, 2023 shows a signage of Credit Suisse in Geneva, Switzerland. (Xinhua/Lian Yi)
Swiss National Bank (SNB) will provide substantial liquidity assistance to support UBS's takeover of Credit Suisse.
GENEVA, March 19 (Xinhua) -- Credit Suisse will be taken over by Swiss banking giant UBS, the Swiss federal government said on Sunday.
On Friday, the liquidity outflows and market volatility showed that it was no longer possible to restore the necessary confidence and that a swift and stabilizing solution was absolutely necessary, the government said.
"In this difficult situation, the takeover of Credit Suisse by UBS is the best solution for restoring the confidence that has been lacking in financial markets recently, and for best managing the risk to our country and its citizens," the government said.
This photo taken on Feb. 13, 2023 shows a building of Credit Suisse, Switzerland's second-largest bank, in Lucerne, Switzerland. (Xinhua/Lian Yi)
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 3 billion Swiss francs, UBS said in a statement published on Sunday.
The combination is expected to create a business with more than 5 trillion U.S. dollars in total invested assets and sustainable value opportunities, the statement said.
Swiss National Bank (SNB) will provide substantial liquidity assistance to support UBS's takeover of Credit Suisse, said the Swiss central bank in a statement published on Sunday.
This takeover was made possible with the support of the Swiss federal government, the Swiss financial market supervisory authority FINMA and the SNB, the statement said.
A man walks past Credit Suisse in Geneva, Switzerland, on March 16, 2023. (Xinhua/Lian Yi)
With the takeover of Credit Suisse by UBS, a solution has been found to secure financial stability and protect the Swiss economy in this exceptional situation, the statement said.
Both banks have unrestricted access to the SNB's existing facilities, through which they can obtain liquidity from the SNB, the statement said. (1 Swiss franc = 1.08 U.S. dollar) ■
