UBS is reportedly seeking government guarantees of up to $6 billion to back its planned takeover of Credit Suisse.
According to Bloomberg, UBS has asked the Swiss government for guarantees to help fund the projected $20 billion to $25 billion takeover. The guarantees could come in the form of direct loans, loan guarantees, and/or capital injections.
The report comes after UBS CEO Sergio Ermotti said on Tuesday that the bank was “exploring all options” to finance the deal, including government support.
UBS is reportedly in talks with Credit Suisse about a potential tie-up, although no agreement has been reached yet. The Swiss government is said to be supportive of the potential merger in order to maintain the country’s banking sector competitiveness.
If the deal goes through, it could create the largest bank in Switzerland and one of the biggest wealth management companies in the world.
