NET INCOME. SOURCE: S&P CAPITAL IQ
UBS Group AG is acquiring Credit Suisse Group AG for $3.2B, supported by the Swiss government and SNBN. This is the first megamerger of systemically critical global banks since the 2008 financial crisis.
- Credit Suisse shareholders will receive one share of UBS for every 22.48 Credit Suisse shares they hold.
- The urgency on the part of regulators was prompted by an increasingly dire outlook at Credit Suisse, which was facing as much as $10B in customer outflows.
- Swiss authorities were pressured to make the deal happen before Asian markets opened for the week.
- Credit Suisse had taken a $54B lifeline from the Swiss National Bank last week to enter the weekend intact.
- Unlike Silicon Valley Bank, whose business was concentrated in a single geographic area and industry, Credit Suisse is a global player.
- UBS has around 74,000 employees globally with a balance sheet roughly twice as large, at $1.1T in total assets.
- Credit Suisse is one of the leading money managers for the global elite and is advised by Centerview Partners, while UBS' financial advisers are JPMorgan Chase & Co. and Morgan Stanley.
