UBS to Acquire Credit Suisse for Over $2 Billion
According to reports from the Financial Times, people familiar with the matter said UBS had agreed to acquire Credit Suisse and raised its bid to more than $2 billion. UBS will purchase the shares of Credit Suisse at a price of more than 0.5 Swiss francs per share, which is still far below the closing price of 1.86 Swiss francs last Friday. In addition, UBS has agreed to soften the “material adverse change” clause, which stipulates that if UBS’s credit default spreads soar, the transaction will lapse. The material adverse change clause will apply between the signing and completion of the transaction. People familiar with the matter also said that the Swiss authorities have obtained the prior approval of relevant regulatory bodies in the United States and Europe, and it is expected that the United States and Europe will issue a joint statement today. Two people familiar with the matter said UBS would significantly shrink Credit Suisse’s investment banking business, with the combined investment banking business accounting for no more than one-third of the combined group. It is reported that during this negotiation, the negotiators gave the code name Cedar to Credit Suisse and Ulmus to UBS.
People familiar with the matter: UBS is understood to have agreed to acquire Credit Suisse for over US $2 billion
Analysis based on this information:
Reports from the Financial Times indicate that UBS has agreed to purchase Credit Suisse for over $2 billion. The transaction will involve UBS buying the shares of Credit Suisse at a price of more than 0.5 Swiss francs per share, which is significantly lower than its last closing price of 1.86 Swiss francs. Despite this, the acquisition will still involve significant changes to Credit Suisse’s business, as UBS plans to significantly shrink its investment banking operations. The negotiators involved in the deal used the code names Cedar and Ulmus for Credit Suisse and UBS, respectively.
One of the most significant details of the acquisition is the agreement to soften the “material adverse change” clause. This clause is intended to protect buyers during the period between the signing and completion of a transaction, with the condition that if there is a significant change in the target’s business or financial position, the buyer can back out. UBS has agreed to make this clause less stringent, specifically related to its credit default spreads. This shows that UBS is confident in its ability to manage Credit Suisse’s business and risks during the acquisition process.
UBS’s plans to shrink Credit Suisse’s investment banking business are also noteworthy. The combined investment banking operations of the two banks will account for no more than one-third of the new entity. This indicates that UBS sees more value in Credit Suisse’s other businesses and wants to focus on growing those areas. It also shows how much the investment banking landscape has changed since the financial crisis, with banks increasingly moving away from risky trading activities and towards more stable and profitable business lines.
The acquisition has also received regulatory approval in the United States and Europe, which is a key factor in making the deal happen. It is expected that the U.S. and Europe will issue a joint statement in the coming days. Overall, this acquisition shows how banks continue to adapt to changing market conditions, regulatory pressures, and shifting customer demands. It also demonstrates UBS’s strategic focus on growing its business and taking advantage of market opportunities to drive long-term growth.
In summary, UBS’s move to acquire Credit Suisse for over $2 billion is a significant development in the banking industry. Despite the lower price per share, the acquisition still involves significant changes to Credit Suisse’s business, with UBS planning to shrink its investment banking operations. The softening of the material adverse change clause and regulatory approval from the U.S. and Europe further highlight the importance of regulation and risk management in the banking sector.
This article and pictures are from the Internet and do not represent qiAiAi's position. If you infringe, please contact us to delete:https://www.qiaiai.com/metaverse/6013.html
It is strongly recommended that you study, review, analyze and verify the content independently, use the relevant data and content carefully, and bear all risks arising therefrom.
Related recommendations
-
Global Payment Solution Provider Ingenico Ventures into Bitcoin Acceptance
It is reported that Ingenico, a global payment solution provider, now accepts Bitcoin in France.
Ingenico now accepts Bitcoin in France
Interpreta…
-
XUC Current Price
What is the current price of XUC? According to Coinmarketcap data, the current
-
Title: Galaxy Digital Reports a Net Loss of $1 Billion in Cryptocurrency Investment in 2022
On March 28th, the cryptocurrency investment company Galaxy Digital reported a net loss of $1 billion in 2022, while the profit realized in 2021 was $1.7 billion. It also reported
-
What currency does Biden use (monetary policy after Biden took office)
What currency does Biden use? The White House official website announced that the White House has rich experience in financial technology and in-depth research on blockchain technology. According to the Deputy Secretary of the US Treasury, what currency is President Biden using to promote economic recovery? The Biden government is currently planning to launch a series of pilot projects of Cryptocurrency, central bank digital currency (CBDC) and other related policies According to the previous report of the New York Times, US President Trump has begun to use his own Cryptocurrency as a means of payment. According to information released by the National Banking Commission of the United States, Biden also announced his intention to create a central settlement token operated by federal agencies – the “Federal Reserve” or “US dollar” (USD) On January 19th, after Biden took office, Federal Reserve Chairman Powell said, “I expect a very clear monetary policy framework in the coming weeks.” He said, “If Congress does…
-
What does Bitcoin public key mean (where can I check the Bitcoin wallet public key)
What does Bitcoin public key mean? Bitcoin public key is a link in Cryptography. Simply put, it means writing down and saving the data in a digital currency wallet through a key, so that one can know what the private key is and what has been stolen. The private key in Bitcoin, also known as Asymmetric Cryptography (NPOS), is a special hash function used to protect information exchange between trading parties on the chain For people who use the same token, the longer they hold it, the more information they receive. This means that you own the asset and can control its transfer or transfer anywhere else; Therefore, public keys are also known as “programmable signatures” – they are the only service institutions or companies that are unforgeable and will not leak to third parties Where can I check the public key of a Bitcoin wallet?Where can I check the private key of a Bitcoin wallet? How can I check…
-
What currency is used for settlement in Hainan Free Trade Port (How Hainan Free Trade Port Works)
What currency is used for settlement in Hainan Free Trade Port? According to the
-
What coins can be mined by AntPool (AntPool Tutorial)
What coins can be mined by AntPool? According to the official website, AntPool
-
zkLink Regains Control of Discord After Hack
According to reports, zkLink, a multi chain aggregation protocol based on ZK Roll up, tweeted that zkLink has regained control of Discord. Previously, CertiK monitoring showed that
-
London Cryptocurrency Asset Management Company Forms New Senior Investor Team
According to reports, London cryptocurrency asset management company Old Street Digital has formed a team of senior investors, with Old Street Digital (OSD) managing assets of less
-
What is the value of zks coins
What is the value of zks coins? According to zks.com data, what is the value of zks coins? The details are as follows: ZKS is a commonly used trading platform in the market at present, which realizes the quick settlement of transaction fees through automatic Market maker contract. According to the information disclosed by the ZKS team, the development of a testing network (testing network) after the main network was launched began in June 2017, and it is planned to launch the main chain 2.0 (testing network) by the end of this month. In order to ensure safety and liquidity, it is expected to launch the main node election and public testing activities of Mainnet 2.0 in the near future. At that time, relevant progress and announcements will be announced one after another. Investors are kindly requested to carefully study before making investments Is zks coin valuableAccording to CoinDesk, is zks coin valuable? Some time ago, I saw a netizen…