UBS reportedly reaches deal to buy Credit Suisse for more than $2 billion

Struggling Swiss banking giant Credit Suisse has reportedly agreed to be bought by its arch-rival UBS at a discount to Friday’s close price, after seeing a wave of customer deposits exit the bank.

will buy Credit Suisse
for more than $2 billion in an all-stock deal, the Financial Times reported, citing people with direct knowledge of the transaction. Bloomberg News reported the same deal terms.

The 0.50 francs per share UBS is offering, in stock, compares to Credit Suisse’s
closing price of 1.86 francs on Friday. The FT said UBS initially bid just 0.25 francs per share.

Separately, The Wall Street Journal reported the Swiss National Bank offered UBS a roughly $100 billion liquidity to absorb Credit Suisse. That comes after SNB last week agreed to loan Credit Suisse 50 billion francs.