UBS Group, Switzerland's largest banking institution, has agreed to acquire its troubled rival Credit Suisse for $3.25B with an emergency rescue plan.
As part of the deal, the Swiss bank was sold for an amount that accounts for 60% less than its $8B market cap dated March 17.
Swiss authorities bypassed the shareholder vote to close the deal, changing the country's regulations.
- The deal will see the troubled bank's shareholders receiving one share in UBS for every 22.48 shares in Credit Suisse.
- The Swiss National Bank, the country's central bank, will provide more than $100B in liquidity to UBS.
- Credit Suisse will be able to continue operating as usual until the merger deal is finalized.
- Following the announcement, leading cryptocurrency Bitcoin (BTC) hit $28,500, its highest price over the last nine months.
Blockchain-based operating system Tron's founder Justin Sun also revealed his intention to buy Credit Suisse for $1.5B to integrate the bank into the Web3 world.
- The investment bank reported operational issues right after the three consecutive crypto-friendly bank collapses of Silvergate Bank, Silicon Valley Bank (SVB), and Signature Bank within just a week in March.
