The national bank of Switzerland (SNB) in conjunction with regulators is finalizing plans for the Credit Suisse acquisition to go ahead of schedule. According to the bank, takeover of the company by UBS is the only way to restore total confidence. With this, the bank would be allowed to take over the company without the usual six weeks mandated for consultations with executives.
SNB wants to complete the acquisition before Monday
In a report published by Financial Times, the Switzerland bank will trigger measures to ensure the takeover happens ahead of the scheduled time. The bank wants to ensure the it is complete before it opens its doors to customers on Monday morning. With SNB planning to remove the mandatory six weeks consultation period, the deal should be finalized before Monday.
SNB and the regulator have been working tirelessly to ensure they reach a compromise while ensuring the move has no repercussions. The bank said that allowing UBS to take over the company is the only way to restore user confidence in the bank.
UBS plans to follow Credit Suisse’s plans
The report also clarified that UBS intends to go through with the plan to cut down its investment institution. Two sources close to the company noted that the combined group would only make up a third of the whole company. According to details, UBS presently holds over $1 trillion, while Credit Suisse holds about $500 billion. If the two financial institutions agree on a merger, they could create one of the biggest financial institutions across Switzerland and Europe.
This update is coming off the back of BlackRock’s statement that it had no intention to acquire the financial institution. A previous statement by the SNB mentioned that the bank was still in good shape. SNB also noted that it would provide liquidity to the bank because it understands the recent market turmoil has affected everyone over the last few days.