Financial Times: UBS talks about acquiring Credit Suisse
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UBS Group AG is in talks to acquire all or part of Credit Suisse, the Financial Times reported on Friday evening, citing people familiar with the matter.
UBS, the world’s largest Swiss bank, is in talks to fully or partially acquire Credit Suisse, its archrival, “with the express blessing of Swiss regulators.”
The Swiss central bank “want a simple solution before markets open on Monday,” the FT believes.
The daily adds that UBS, however, wants to assess what risks the total or partial takeover of Credit Suisse might pose to its own business. According to the FT, the boards of both banks are to meet over the weekend to discuss the matter.
The possibility of a takeover of Credit Suisse was also mentioned by JP Morgan analysts, “with UBS as a potential option”.
The idea of a merger between the two largest Swiss banks comes up regularly, but has been generally rejected due to competition issues and risks to the stability of the Swiss financial system.
Credit Suisse, whose shares have lost 83 percent since March 2021, has plunged. its value was caused by the declaration of the central bank of Saudi Arabia, its largest shareholder, which announced that it would not provide it with additional capital.
On Wednesday evening, the Swiss central bank and Finma, the market regulator, issued a joint statement saying that Credit Suisse meets the capitalization and liquidity requirements for “systemically important” banks and that the central bank will “provide liquidity to Credit Suisse” if necessary.
Credit Suisse said on Thursday morning it would borrow up to 50 billion Swiss francs from the Swiss National Bank in a so-called “decisive action” to boost its liquidity.
The problems of Credit Suisse, a global bank, have deepened the perturbations in the global financial sector after the recent collapse of the US Silicon Valley Bank. (PAP)
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