166 Year history comes to an end

UBS has agreed to buy CS in a Swiss National Bank negotiated deal which took place over the weekend. CS was bought at a heavy discount as compared to its equity value as of Friday End of Trading.

• All shareholders of CS will get 1 share in UBS for 22.48 shares they hold in CS. The total stock deal works out to a total consideration of CHF 3 bn.

• The merger transaction remains subject to customary closing conditions. The merger is expected to be completed by the end of 2023 if possible.

• The Swiss National Bank will grant CS access to facilities that provide substantial additional liquidity. UBS will be getting additional credit line worth $100bn.

• UBS is expected to appoint key personnel to CS as soon as legally possible.

• UBS has expressed its confidence that the employment of the staff at CS will be continued.

• This deal was approved by the Swiss competition watchdog citing this would be the possible alternative for the Financial stability of the markets.

• FINMA has determined that CS' Additional Tier 1 Capital bonds in the aggregate nominal value of CHF 16 bn will be written off to 0.

• The bond write off is the biggest loss yet for Europe's $275bn AT1 market.