After America, Switzerland's Credit Suisse Bank also collapsed

Mar Tue 2023 01:45:22


After America, Switzerland's Credit Suisse Bank also collapsed

Kathmandu. The prestigious Swiss Credit Bank of Switzerland with a capital of billions of dollars is going to be completely failed and sold. The 165-year-old bank has been announced to be purchased by Switzerland's largest bank, UBS AG Group. UBS, the country's second-largest private lender, will buy Credit Suisse for $3.2 billion amid the banking crisis, according to reports.

Swiss regulator Swiss National Bank played a key role in the deal between UBS and Credit Suisse Bank. The Swiss government is also supporting UBS in this deal. The Swiss government is providing a 9 billion franc guarantee to UBS for the risks involved in the acquisition of Credit Suisse.

Stakeholder approval for this deal of UBS and Credit Suisse Bank has also been revoked. It is said that the Swiss National Bank will also provide a loan of 100 billion Swiss francs to help UBS to buy Credit Suisse Bank.

Under this 'All Share Transaction', there is an agreement to give 1 share of UBS to the shareholders of Credit Suisse for every 22.48 shares. The deal is worth about 3 billion Swiss francs. The deal is said to be at the closing price of Credit Suisse shares in the market closed on March 17. Shares of Credit Suisse last traded last Friday at 1.86 Swiss francs.