HomeFinancial MarketsUBS Formally Submits Offer To Buy Credit Suisse

UBS Formally Submits Offer To Buy Credit Suisse

UBS Group AG has formally offered to buy the struggling Credit Suisse for up to $1 billion, the Financial Times reported on Sunday. In order to accelerate the deal, the Swiss government will look to change the country’s laws to bypass a shareholder vote on the takeover.

Should both parties agree to all the terms of the deal, the acquisition could be closed as soon as Sunday evening. This comes after UBS submitted an offer of 0.25 Swiss francs ($0.27) a share to be paid in UBS stock. It was reported that any potential deal would be priced at a fraction of the 1.86 Swiss francs that Credit Suisse shares closed at on Friday afternoon.

Included in the offer is a “material adverse change” condition that UBS insisted on whereby the deal would be scrapped in the instance that Credit Suisse’s credit default spreads jump by 100 basis points or more. The Swiss government is reportedly looking to offer a guarantee against the risks involved in the deal.

Credit Suisse declined to comment on the deal, while UBS and the Swiss government could not be reached for comment.

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