UBS concludes a $3.2B agreement with Credit Suisse in response to an approach from Justin Sun
The UBS Group has agreed to acquire Credit Suisse for $3.2 billion, according to multiple sources published on March 19.
According to Associated Press reporting, Swiss President Alain Berset announced the agreement in the evening. The government mediated the agreement to avoid a financial disaster.
The deal’s worth climbed during the day. Initially, UBS Group proposed to acquire Credit Suisse for $1 billion. UBS Group later increased its offer, and while Berset would not immediately disclose the deal’s value, several outlets estimated it to be worth $2 billion.
The Associated Press estimates the deal is worth $3.2 billion as of 20:00 UTC on Wednesday. The latest report also says that the Swiss National Bank would supply UBS Group with $162 billion in liquidity, an increase from the $54 billion indicated before.
Credit Suisse had significant difficulties before the transaction. The corporation has been troubled by scandals for years, but on March 14, officials reported “serious deficiencies” in the bank’s financial reporting systems.
Worries about Credit Suisse caused a significant slide in the company’s share price, which presently stands at $1.86 (a decrease of 32.85% over the previous month).
Earlier in the day, Justin Sun, renowned for his leadership position at Huobi and past job as CEO of TRON, bid to purchase Credit Suisse for $1.5 billion.
On March 19, Sun posted in a series of tweets: “I would want to submit a bid of $1.5 billion to purchase Credit Suisse and incorporate it into the Web3.0 ecosystem. Switzerland has been one of the world’s most crypto-friendly nations.”
Sun said that UBS’s first offer “falls short” and outlined his intentions to connect Credit Suisse with blockchain technology and cryptocurrencies. Regarding crypto-friendly regulations, he emphasized that Switzerland is among the world’s most crypto-friendly nations.
Whether Credit Suisse and the Swiss government evaluated, Sun’s offer is unknown. According to Fortune, the government saw nationalization as the sole viable option for the UBS agreement, implying that Sun’s proposal was not seriously examined.