According to several reports on March 19, UBS Group has reportedly agreed to acquire the struggling European bank Credit Suisse for $3.2 billion.
UBS will buy Credit Suisse
According to reports from the Associated Press, Swiss President Alain Berset announced in the evening that UBS Group has agreed to purchase the ailing European bank Credit Suisse. The government reportedly brokered the deal to prevent a financial crisis.
Throughout the day, the value of the deal increased. Initially, UBS Group offered to buy Credit Suisse for $1 billion. However, UBS Group raised its bid later on. Although Berset did not reveal the size of the deal at first, many reports placed the deals value at $2 billion.
As of 8:00 p.m. UTC, the deal is reportedly worth $3.2 billion, according to the Associated Press. The current report also suggests that the Swiss National Bank will provide $162 billion of liquidity to UBS Group, up from the previously announced $54 billion.
Prior to the acquisition, Credit Suisse encountered certain problems. Despite facing scandals for a considerable time, new concerns emerged on March 14 when the banks managers revealed significant flaws in its financial reporting controls.
As a result of these concerns, the value of Credit Suisse's shares tumbled swiftly, with the company's stock (CHF) now valued at $1.86, representing a decline of 32.85% over the past month.
Justin Sun made crypto proposal
Earlier on March 19, Justin Sun, a former CEO of TRON and a prominent figure in the cryptocurrency industry, made an offer to purchase Credit Suisse for $1.5 billion. In a series of tweets, Sun expressed his interest in integrating the ailing bank into the Web3.0 world, highlighting Switzerland's reputation as one of the most crypto-friendly countries in the world.
Sun criticized UBS's bid for falling short and outlined his own plans to incorporate blockchain technology and cryptocurrencies into Credit Suisse's operations. He believes that this move would further enhance Switzerland's position as a leader in crypto regulation.
It remains uncertain whether Credit Suisse and the Swiss government took Justin Sun's offer into account.
According to Fortune, the Swiss government deemed nationalization as the sole viable alternative to the UBS acquisition, suggesting that Sun's proposal may not have been given serious consideration.
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