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UBS Group doubles offer and acquires Credit Suisse for $2B

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UBS Group doubled its initial offer and agreed to buy its competitor Credit Suisse for nearly $2 billion on March 19, in a historical deal for the two biggest banks in Switzerland, the Financial Times reported.UBS previously put a $1 billion offer on the table on March 18, but the deal was rejected by the Credit Suisse board, FT sources said.

The $1 billion offer was a considerable discount under the bank's market value on March 17 of nearly $8 billion, according to data from Companies Market Cap.To close the deal, Swiss authorities also agreed to change the country's regulations to bypass a shareholder vote and announce the deal over the weekend, ahead of the markets opening.

Also, as part of the deal, the Swiss National Bank (SNB) committed to provide over $100 billion in liquidity line to USB. According to the FT, the deal was heavily influenced by the SNB and the Swiss Financial Market Supervisory Authority (FINMA).

United States and European regulators are said to have approved the deal, with coordinated statements to be released later on Sunday.UBS is taking over Credit Suisse authorities considered alternatives to Credit Suisse in case the deal with UBS failed over the weekend, including a full or partial nationalization of the bank as an emergency option.

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