New Delhi, March 20 (HS): UBS AG of Switzerland has announced the acquisition of Bank Credit Suisse. The deal has been done for three billion Swiss francs (about US $ 3.23 billion). Swiss President Alain Berset announced this late in the night.
This is considered a major step to increase confidence in the global financial market amidst the banking crisis. The entire deal between the two banks is based on shares. Under this, shareholders of Credit Suisse will get one share of UBS for every 22.48 shares held. UBS AG has decided to take this step to protect the world’s banking sector from further volatility.
Financial assistance of $ 108 billion will also be given to UBS AG and Credit Suisse from the Central Bank of Switzerland. The Swiss government will compensate UBS AG for 9 billion Swiss francs for any losses incurred under the deal. In fact, a recent financial crisis had arisen in front of Credit Suisse Bank, after which the central bank of Switzerland gave a loan of $ 54 billion to Credit Suite.
It is noteworthy that the 166-year-old Credit Suisse Bank is one of the largest banks in the world. Credit Suisse is the second largest bank in Switzerland after UBS AG. Last week, the bank’s shares had fallen by up to 25 per cent. After this the Swiss Central Bank has taken this step.
Hindusthan Samachar/ Prajesh Shankar / Mukund/Indrani Sarkar
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