The takeover comes on the back of Silicon Valley Bank’s collapse and fears of global financial chaos
The takeover was facilitated by the Swiss Federal Department of Finance, Financial Market Supervisory Authority and National Bank.
Credit Suisse, a 167-year-old bank, has had a number of problems over recent years, including tax evasion charges and other scandals.
It received an emergency $54b loan from the Swiss National Bank on Wednesday as fears about the bank grew, but its shares continued to sink.
The takeover comes on the back of Silicon Valley Bank’s collapse and fears of global financial chaos.
Colm Kelleher, chairman of UBS, commented: “This acquisition is attractive for UBS shareholders but, let us be clear, as far as Credit Suisse is concerned, this is an emergency rescue.
“We have structured a transaction which will preserve the value left in the business while limiting our downside exposure.
“Acquiring Credit Suisse’s capabilities in wealth, asset management and Swiss universal banking will augment UBS’s strategy of growing its capital-light businesses.”
Ralph Hamers, chief executive officer of UBS, added: “Bringing UBS and Credit Suisse together will build on UBS’s strengths and further enhance our ability to serve our clients globally.
“The combination supports our growth ambitions in the Americas and Asia while adding scale to our business in Europe.”
The Bank of England welcomed the deal in order to support financial stability, and said the UK banking system is “well capitalised and funded, and remains safe and sound”.