The Swiss federal government announced on the 19th that Credit Suisse will be acquired by UBS Group. At a press conference held that evening, the Swiss federal government stated that recent liquidity outflows and market fluctuations showed that it was no longer possible to restore the necessary confidence, and that a quick and stabilizing solution to the situation was "absolutely necessary." "This solution is that Credit Suisse will be acquired by UBS Group."

The Swiss federal government said that in the face of the current difficult situation, UBS's acquisition of Credit Suisse is the best solution to restore the confidence that the financial markets have recently lacked, and it is also the best solution to manage the risks faced by Switzerland and its citizens. UBS announced the same day that according to the terms of the all-share transaction, Credit Suisse shareholders will receive 1 UBS share for every 22.48 Credit Suisse shares held, equivalent to 0.76 Swiss francs per share (1 US dollar is approximately 0.9252 Swiss francs), with a total consideration of 3 billion Swiss francs (3.3 billion US dollars). The transaction will create a company with more than 5 trillion US dollars in investment assets.

The announcement said the acquisition was made possible with the support of the Swiss federal government, the Swiss Financial Market Supervisory Authority and the Swiss National Bank. Both banks will have access to liquidity support through the Swiss National Bank.

The Swiss National Bank issued a statement on the 19th stating that the Swiss National Bank will provide liquidity assistance to support UBS Group's acquisition of Credit Suisse. Credit Suisse was founded in 1856 and has a significant influence on the global capital markets. In February of this year, Credit Suisse announced a net loss of 7.3 billion Swiss francs in 2022, the second consecutive year of net losses. On March 14, Credit Suisse released a report stating that the bank’s internal control over financial reporting had "significant deficiencies."

Earlier news, the Swiss National Bank said that UBS announced the acquisition of Credit Suisse. The Swiss National Bank will provide a large amount of liquidity assistance to support UBS's acquisition of Credit Suisse. Both UBS and Credit Suisse can use the existing facilities of the Swiss National Bank without restrictions. The Swiss National Bank can provide Credit Suisse with a liquidity assistance loan of up to 100 billion Swiss francs and provide a federal default guarantee. (Planet Daily)