The Swiss bank is paying more than $US2 billion for its rival, according to people with knowledge of the matter.
It will be an all share deal and priced at a fraction of Credit Suisse’s close on Friday, when the bank was valued at about 7.4 billion francs The people asked not to be identified because the deal was not public yet.
US authorities have been working with their Swiss counterparts because both lenders have operations in the US and are considered systemically important in Switzerland, Bloomberg reported earlier. Authorities sought an agreement before markets opened again in Asia.UBS had earlier tabled an offer of about $US1 billion, or 0.25 francs a share for Credit Suisse, which the firm had pushed back on, people with knowledge of the matter said earlier on Sunday.
The takeover of the 166 year-old lender marks a historic event for the nation and global finance. The former Schweizerische Kreditanstalt was founded by industrialist Alfred Escher in 1856 to finance the build-out of the mountainous nation’s railway network. It had grown into global powerhouse symbolising Switzerland’s role as a global financial centre, before struggling to adapt to a changed banking landscape after the financial crisis.
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