Credit Suisse - Central News Hub

BoE approves UBS’s Credit Suisse takeover

Change of control approvals by regulators typically can take up to 60 working days to secure in Britain. Representatives for UBS and Credit Suisse declined to comment…reports Asian Lite News

The Bank of England has approved UBS Group AG’s takeover of Credit Suisse Group AG in the United Kingdom, people familiar with the process told Reuters, a key market for the Swiss lenders racing to close the rescue deal.

Change of control approvals by regulators typically can take up to 60 working days to secure in Britain. Representatives for UBS and Credit Suisse declined to comment.

On March 19, just after the deal was announced, the Bank of England said it welcomed “the comprehensive set of actions set out by the Swiss authorities today in order to support financial stability,” without elaborating.

UBS needs 58 countries to sign off on the combination that will make Switzerland biggest bank a wealth management giant with more than $3 trillion in assets. The longer the deal takes to close, the harder it could be for Credit Suisse to hold on to its business.

The United Kingdom, where Credit Suisse has $60 billion of risk-weighted assets primarily in its investment banking division, is one of its biggest markets outside of Switzerland.

UBS on Tuesday also secured a temporary green light from European Union antitrust regulators to complete its acquisition of Credit Suisse, but will still have to request clearance under EU merger rules, the European Commission said.

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Swiss banking giant UBS to buy Credit Suisse

The combination is expected to create a business with more than $5 trillion in total invested assets and sustainable value opportunities…reports Asian Lite News

Credit Suisse will be taken over by Swiss banking giant UBS, the Swiss federal government has announced.

On Friday, the liquidity outflows and market volatility showed that it was no longer possible to restore the necessary confidence and that a swift and stabilising solution was absolutely necessary, the government was quoted by Xinhua news agency as saying.

“In this difficult situation, the takeover of Credit Suisse by UBS is the best solution for restoring the confidence that has been lacking in financial markets recently, and for best managing the risk to our country and its citizens,” the government said on Sunday.

Under 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 CHF 0.76/share for a total consideration of 3 billion Swiss francs, UBS said in a statement published on Sunday.

The combination is expected to create a business with more than $5 trillion in total invested assets and sustainable value opportunities, the statement said.

Swiss National Bank (SNB) will provide substantial liquidity assistance to support UBS’s takeover of Credit Suisse, said the Swiss central bank in a statement published on Sunday.

This takeover was made possible with the support of the Swiss federal government, the Swiss financial market supervisory authority FINMA and the SNB, the statement said.

With the takeover of Credit Suisse by UBS, a solution has been found to secure financial stability and protect the Swiss economy in this exceptional situation, the statement said.

Both banks have unrestricted access to the SNB’s existing facilities, through which they can obtain liquidity from the SNB, the statement said. (1 Swiss franc = $1.08)

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