Market | Global Market

UBS Mulls Takeover of Credit Suisse, Seeks $6b Guarantee of Swiss Government

Mar 19, 2023   •   by Proshare News   •   Source: Reuters, Bloomberg   •   eye-icon 238 views

According to Reuters, UBS Group AG is a multinational investment bank and financial services company founded and based in Switzerland and is seeking guarantees of $6bn to acquire a significant stake in Credit Suisse.


This in essence means if UBS is to proceed with the proposed transaction, it will require the government of Switzerland to provide the necessities to conclude a historic takeover of a global investment bank.


Sources believe that a deal could be agreed by today or latest tomorrow, which will be one of the biggest financial stories for 2023.


Bloomberg reported over the weekend that the Swiss National Bank and Financial Market Authority are orchestrating the talks for a possible deal.


Both parties through their representatives were set to meet to discuss extensively the possibility of reaching an agreement in principle.


Initially, Blackrock the biggest money manager in the world, with assets under management valued at $8.6trn was considering a takeover bid of Credit Suisse.


Mr. Larry Fink Co-Founder and CEO of Blackrock in his statement yesterday said: “Blackrock is not participating in any plans to acquire all or any part of Credit Suisse and has no interest in doing so”.


Credit Suisse on Tuesday, March 16th, 2023, indicated financial material weakness, which raised huge concerns about financial stability in Europe.


Saudi National Bank the largest shareholder in Credit Suisse refused to offer additional financial relief.


UBS as of December 31st, 2022, had a total of $1.104trn as the value of assets under its management and analysts believe a merger with Credit Suisse, will make it one of the biggest financial groups in Europe.


Proshare News will continue to monitor this significant story and a potential acquisition of Credit Suisse by UBS.



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