UBS reaches deal to buy Credit Suisse for more than $2 billion

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UBS reaches deal to buy Credit Suisse for more than $2 billion
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UBS reportedly reaches deal to buy Credit Suisse: Watch the press conference

Struggling Swiss banking giant Credit Suisse has agreed to be bought by its arch-rival UBS at a discount to Friday’s close price, after seeing a wave of customer deposits exit the bank.

“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 SNB said in a statement. The 0.50 francs per share UBS is offering, in stock, compares to Credit Suisse’s CSGN, -8.01% closing price of 1.86 francs on Friday. The FT said UBS initially bid just 0.25 francs per share.

Karin Keller-Sutter, the Swiss finance minister, said she held talks with U.S. Treasury Secretary Janet Yellen and U.K. Chancellor Jeremy Hunt.

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