Credit Suisse was shrouded in management issues and controversies since 2022. The recent fall of three US banking lenders increased the concerns around the demise of this institution. Increasing concerns around the instability and insolvency of this bank have wreaked havoc on the economy of Switzerland.
Therefore, the Swiss government came forward to ensure stability and arrange a smooth takeover of the bank to avoid any unsavory conditions.
To this end, UBS Group made an offer to acquire the struggling bank. The offer was extended to $3.2 billion according to the local media outlets. The president of Switzerland, Alain Berset has made an official announcement about the confirmation of this acquisition.
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This report was shared by the Swiss media outlet Associated Press. These reports have confirmed that the government has played an important role in assuring this acquisition to prevent a financial crisis in the country.
Saudi National Bank is the largest shareholder of Credit Suisse. When the concerns around the stability of these banks were increasing, the SNB chairperson that they intend to retain their stake while opting not to increase their accumulation on account of regulatory concerns.
The first offer by UBS group made by Credit Suisse was limited to $1 billion. However, since then the group has increased its bid and it 2was finalized at $3.2 billion as per unofficial media reports. President Berset has refrained from disclosing the real value of the deal.
However, the reporters of the Associated Press have claimed it to be around $3.2 billion. This media outlet has also reported that the Swiss National Bank is set to chip in $162 billion as liquidity to UBS Bank.
In previous deal contracts, this liquidity support was limited to $54 billion. The reasons that have led to the sales of Credit Suisse include material weaknesses and the lack of financial reporting controls. These concerns have also impacted the share price of this bank depleting by 32.85% in the last 30 days.
Justin Sun was also Interested to Acquire Credit Suisse
Justin Sun has served as the head of Huobi and CEO of Credit Suisse. He extended an official offer of $1.5 billion to Credit Suisse. He mentioned in his latest tweet that he was offering $1.5 billion from his account to acquire Credit Suisse and add it to the Web 3.0 sector.
He also claimed that he was making this offer keeping in mind that Switzerland was the most crypto-friendly country in the world.
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He also commented that the initial bid offered by UBS Group was not sufficient and he was working on big plans to add Credit Suisse to the crypto economy. However, thus far, the Credit Suisse management and the Swiss government have not disclosed if they intend to accept his offer.