UBS completes Credit Suisse deal for $3.2B following offer from Justin Sun
UBS Group has agreed to buy troubled European bank Credit Suisse for $3.2 billion, according to various reports. March 19th.
UBS acquires Credit Suisse
Swiss President Alain Berset announced the deal in the evening. Associated PressThe government brokered the deal to prevent a financial crisis.
The value of the transaction increased in one day. UBS Group initially offered to buy Credit Suisse for just $1 billion. UBS Group has since raised its bid. Berset did not initially disclose the size of the deal. many reports put the value of the deal at $2 billion.
As of 8:00 PM UTC, AP suggests the deal is worth $3.2 billion. The current report also suggests that the Swiss National Bank will provide UBS Group with his $162 billion of liquidity, up from his previously announced $54 billion.
Credit Suisse experienced certain problems leading up to the sale. The company has faced scandals for years, but new problems emerged on March 14 after a manager revealed “significant weaknesses” in the bank’s financial reporting controls.
Concerns about Credit Suisse sent the company’s stock price down sharply. The company’s share price (CHF) is currently at $1.86 and over the last month he has fallen 32.85%.
Justin Sun proposed a cryptocurrency
Justin Sun, known for his leadership role at Huobi and his previous role as CEO of TRON, offered to acquire Credit Suisse for $1.5 billion earlier in the day.
In a series of tweets, Sun wrote: March 19th:
I would like to make a $1.5 billion proposal to acquire Credit Suisse and integrate it into the world of Web3.0. Switzerland is one of the most crypto-friendly countries in the world.
Sun said UBS’s initial bid “failed” and explained his own plans to integrate Credit Suisse with blockchain technology and cryptocurrencies. He said Switzerland is one of the most crypto-friendly countries in the world in terms of regulation.
It is unclear whether Credit Suisse and the Swiss government have considered Sun’s proposal.
luck suggests that they thought nationalization was the only alternative to a deal with UBS, meaning Sun’s proposal was not seriously considered.
