BlackRock and UBS are competing to acquire all or part of Credit Suisse. Both entities of the entity have shown their willingness to make an offer, according to the Financial Times. Movement comes after the collapse of the Swiss entity in bag It was forced to resort to financial support, of more than 50,000 million euros, from the Swiss National Bank.
UBS did indeed start negotiations to take over its Swiss rival yesterday evening, as reported by the aforementioned media. In fact, this process was coordinated through talks with the country’s supervisor and regulator, which meant the merger of the two largest financial entities in the territory. The goal: to boost confidence in the financial system and put an end to the stock market chaos of recent days. In this way, this company will really take the lead in the process, although now everything can change with the entry of BlackRock, an old and well-known client of Credit Suisse.
BlackRock is now joining the talks and working on an offer to make to him Credit SuisseOnce you have evaluated all the options you have on the table to attempt to take over all or part of the entity’s assets. The American giant reported its intention to Credit Suisse.
After all, as the Financial Times reports, there is no certainty that any of the operations will pay off in the end. This weekend seems to be the key for the Swiss company. Likewise, the aforementioned media outlets warn that any type of agreement may face regulatory hurdles in the future Europe and the United States.
problems for the bank
Despite the fact that two giant corporations such as BlackRock and UBS have now set out to try to buy the bank, the truth is that Credit Suisse has been in trouble for a long time. It is in the target of investors.
Its collapse in the stock market this week coincided with the bankruptcy of many financial institutions in the United States, such as Silicon Valley Bank and Signature Bank, which sparked panic in the markets and shook investors’ confidence in banks, for a moment.
Thus, the main problem for Credit Suisse arose this week when its major shareholder stated that he would not provide more money going forward, although he later described his words in light of the market’s reaction.
The Swiss entity had suffered from minuscule deposit leakages for months, which, together with management problems and a model that the rest of the sector had questioned, along with the million-dollar fines it had to contend with, generated the perfect storm for the bank.