UBS agrees to acquire Credit Suisse for $3.25bn
Summary
UBS agreed to acquire rival lender Credit Suisse for approximately $3.25bn in an all-share transaction. As part of the deal, Switzerlands central bank would make available a 100bn Swiss franc liquidity line to UBS. Kelleher also said that Credit Suisses investment bank would be shrunk, which might scupper plans for a spin-off of CS First Boston. The tie-up would result in a business with more than $5trn of invested assets and the annual run-rate of cost reductions was seen exceeding $8bn by 2027, by when the transaction would be accretive to UBS while remaining capitalised well above its target of 13%. Commenting after the first reports of UBSs proposed offer of up to $1bn for Credit Suisse at the weekend, analysts at JP Morgan said such an outcome was "positive" as it would likely avoid a resolution and that it would likely be accretive to UBS over the long-term.