The announcement was made on Sunday evening following a weekend of urgent discussions between the two banks and the Swiss financial watchdogs. The deal, according to the Swiss National Bank, was the most effective way to manage economic risks and regain the trust of financial markets. The complete set of measures was praised by the Bank of England.
Shareholders of Credit Suisse were not allowed to vote on the transaction, and they will receive one share of UBS for every 22.48 shares they currently own, valuing the bank at $3.15 billion (£2.6 billion). At Friday’s business closing, Credit Suisse was worth approximately $8 billion (£6.5 billion). Regulators were able to secure a result before the start of the financial markets on Monday thanks to the agreement.
Credit Suisse shareholders will receive one share of UBS for every 22.48 shares they currently own, valued at $3.15 billion (£2.6 billion). They were not permitted to vote on the transaction. Credit Suisse’s market value at Friday’s business closing was about $8 billion (£6.5 billion).
The agreement allowed regulators to obtain a result before the opening of the financial markets on Monday. The Financial Conduct Authority (FCA) and the Bank of England will continue to interact with the British government “as usual,” the UK Treasury said in a statement in support of the merger.
Since both UBS and Credit Suisse have operations in London, the FCA stated on Sunday that it was “minded to approve” the takeover to support financial stability. According to the watchdog, the FCA continues to work closely with UK and international regulatory partners to track market developments.
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