UBS in talks to acquire Credit Suisse-FT

Mar 17 (Reuters) – Banking giant UBS (UBSG.S) is in talks to acquire all or part of Credit Suisse (CSGN.S), with the boards of Switzerland’s two largest lenders set to meet separately over the weekend, Financial The Times reported on Friday.

The Swiss National Bank and regulator FINMA are organizing the talks to build confidence in the country’s banking sector, the report said, citing people familiar with the matter.

On Friday night, Swiss regulators told their counterparts in the United States and Britain that the merger of the two banks was their “Plan A” to salvage confidence in Credit Suisse, the report added.

Several other options are also being discussed between the two banks as both sides seek to assess regulatory constraints in different jurisdictions, the newspaper reported.

The Swiss central bank’s focus is on agreeing a no-fuss solution before markets open on Monday, the report said, adding that there was no guarantee an agreement would be reached.

Credit Suisse and UBS declined to comment on the report. The Swiss National Bank and FINMA did not immediately respond to Reuters’ request for comment.

Bloomberg reported on Thursday that UBS Group AG and Credit Suisse are opposed to a forced merger, with UBS preferring to focus on its own wealth-oriented strategy and unwilling to take risks related to its smaller rival.

Credit Suisse is the biggest bank caught up in the market turmoil following the collapse of US lenders SVB and New York-based Signature Bank, forcing the Swiss lender to borrow up to $54 billion from the Swiss central bank borrow to support liquidity.

Reporting by Kanjyik Ghosh and Akriti Sharma in Bengaluru Editing by Chris Reese and Deepa Babington

Our standards: The Thomson Reuters Trust Principles.


(Visited 1 times, 1 visits today)

Leave a Reply

Your email address will not be published. Required fields are marked *