UBS to buy Credit Suisse

The Swiss government is set to announce a deal that would involve UBS buying smaller and embattled rival Credit Suisse for around $1 billion, three people familiar with the matter said on Sunday.

The Credit Suisse takeover is the most significant consequence so far of the turmoil that unfolded following the implosion of Silicon Valley Bank earlier this month. But Credit Suisse’s problems were largely its fault, tied to years of scandals and financial missteps that cost it billions of dollars in business losses and fines.

Even a $54 billion lifeline from the Swiss National Bank, announced last week, hasn’t been able to stem the erosion in investor confidence that has plunged Credit Suisse shares to lows. record.

Under the terms of the proposed deal, UBS will pay only a fraction of the roughly 8.8 billion Swiss francs, or $9.5 billion, Credit Suisse was valued at on Friday, the people said. The Swiss government is expected to allow certain financial rules to be circumvented, including a six-week consultation period with UBS shareholders before approving any deal.

A deal is expected to be announced later on Sunday, although terms could still change and talks could still break down, these people warned. Details of the proposed transaction were reported earlier by the Financial Times.

The Swiss government would have to circumvent certain regulations that would have otherwise required a six-week consultation period with UBS shareholders before a transaction could be approved.

This is a developing story. Check back for updates.