Saudi National Bank was denied taking 40pc Credit Suisse stake, Blick reports
Last updated on: 10 July,2023 08:16 am
Saudi National Bank's share in Credit Suisse is now just 0.5pc of the UBS after the takeover
VIENNA (Reuters) - Saudi National Bank wanted to increase its stake in Credit Suisse to around 40 per cent from 9.88pc, but was prevented from doing so by Swiss regulator FINMA, Blick newspaper reported on Sunday.
With Switzerland's second-largest bank on the edge of collapse, UBS agreed to buy Credit Suisse for a knockdown price of three billion Swiss francs ($3.4 billion) on March 19 in a rescue orchestrated by Swiss authorities.
FINMA must give its approval for a foreign investor to take a stake of more than 10pc in a major Swiss bank.
It was not clear why FINMA opposed the move that would have involved Saudi National Bank, which was already the biggest shareholder in Credit Suisse, pumping $5bn into the bank, Swiss newspaper Blick reported, without identifying its sources.
Credit Suisse declined to comment. FINMA and Saudi National Bank were not immediately available for comment.
UBS completed the emergency takeover of Credit Suisse last month, forging a Swiss banking and wealth management giant with a $1.6 trillion balance sheet and overseeing more than $5tr in assets.
The deal converted Saudi National Bank's stake in Credit Suisse into just 0.5pc of UBS.