Switzerland’s largest banking group UBS will buy its rival bank Credit Suisse, Swiss Confederation President Alain Berset said on Sunday, confirming that this was the best way to “restore confidence”.

This solution “is not only decisive for Switzerland (…) but also for… stability of the entire world financial system. Berset stated.

The all-share deal between the two biggest Swiss banks will be signed on Sunday evening and its price will be well below Credit Suisse’s closing price of 1.86 Swiss francs on Friday.

According to the Financial Times, shareholders will receive 0.50 Swiss francs ($0.54) per share.

UBS agreed to double the amount originally proposed to overcome the reluctance of Credit Suisse and one of its major shareholders, the British financial daily reported.

Credit Suisse had illegal assets for decades, according to an international investigation

The merger of two banking giants, which are part of a group of 30 banks that are considered key in the global financial systemshould be completed and announced in time for the opening of Asian markets.

Also, The Swiss National Bank has agreed to offer a $100 billion liquidity credit facility to Credit Suisse as part of the deal, according to two people familiar with the matter.

Credit Suisse’s collapse shocked the global financial system last week as panicked investors dumped their stocks and bonds following the collapse of several smaller US lenders.

‘Fusion of the Century’

Such a merger is a complex affair that would otherwise take months, but under pressure from the authorities, UBS will have to close the deal within a few days.

Swiss authorities believe they have no choice but to force UBS to overcome reluctance, fueled by pressure from Switzerland’s main economic and financial partners, who fear for the stability of their own financial markets, according to Blick.

“When the stock market opens on Monday, Credit Suisse could be a thing of the past,” the tabloid writes.

Swiss banking rules require UBS to consult with its shareholders within six weeks, but the operation could be subject to emergency measures, the Financial Times business daily reported, citing sources who spoke on condition of anonymity.

mass withdrawal

The bank posted a record decline on Wednesday, with its stock market value falling to 7 billion Swiss francs, an amount almost equal in euros.which is an almost insignificant amount for an entity that is considered systemically important, so its bankruptcy must be avoided.

According to the Financial Times and Blick, bank customers withdrew 10 billion Swiss francs in deposits in one day late last week, a tangible sign of distrust according to the institution.

The SonntagsZeitung called the possible deal “the merger of the century.”

“The unthinkable is becoming a reality: UBS will soon take over Credit Suisse,” writes the weekly.

According to the Bloomberg agency, UBS requires public bodies to pay legal costs and potential losses that can be measured in billions of Swiss francs.

Negotiations regarding the investment banking activity are stagnating, the financial agency states, and one of the hypotheses for getting out of the crisis is that the purchase be partial and omit this division.

These negotiations are being conducted after a black week on the stock market in which the Swiss central bank had to intervene and lend Credit Suisse 53.7 billion dollars to breathe a sigh of relief and try to ease the nervousness of investors, but without success.

At the end of October, Credit Suisse, with a workforce of 52,000 people, unveiled a major restructuring plan that called for 9,000 job cuts by 2025, representing 17% of the workforce.