Banking giant UBS to buy Credit Suisse to rein in turmoil

/ 20th March 2023 /

Banking giant UBS is buying its smaller rival Credit Suisse for $3.2bn (€2.99bn) in an effort to avoid further marketshaking turmoil in global banking, Swiss president Alain Berset announced on Sunday night.

Cork native Colm Kelleher, chairman of UBS, hailed the "enormous opportunities" that will emerge from the takeover.

The deal was "for the stability of international finance," Mr Berset said. "An uncontrolled collapse of Credit Suisse would lead to incalculable consequences for the country and the international financial system."

UBS
Credit Suisse — Swiss Finance Minister Karin Keller-Sutter (L) shakes hands with Credit Suisse chairman Axel Lehmann at the end of a press conference following Credit Suisse in Bern on March 19, 2023. (Photo by Fabrice COFFRINI / AFP) (Photo by FABRICE COFFRINI/AFP via Getty Images)

The Swiss Federal Council passed an emergency ordinance that allows the merger to go through without shareholder approval.

Credit Suisse chair Axel Lehmann called the deal 'a clear turning point', adding: "It's a historic, sad and very challenging day for Credit Suisse, for Switzerland and global financial markets."