Swiss investment banking giant Credit Suisse has finally been rescued by rival UBS Group AG with a $3.23 billion buyout in a government-backed deal.
The announcement comes after talks that took place over the weekend in Switzerland between the two banks and the country's financial regulator.
The Swiss National Bank (SNB) said the deal was the best way to restore financial market confidence and manage risks to the economy.
The central bank is said to have worked with the Swiss government and the Swiss Financial Market Supervisory Authority to reach the agreement.
The SNB pledged up to $108 billion in loans to support the acquisition, while the government provided guarantees to cover losses of up to $9.7 billion from certain assets to mitigate any risk to UBS.
Meanwhile, the terms of the agreement between the two banks show that Credit Suisse shareholders will receive 1 UBS share for every 22.48 Credit Suisse shares held.
UBS is a multinational investment bank and financial services company based in Switzerland.
The news of this acquisition was welcomed by all parties, including the Bank of England (BOE) who described it as a 'comprehensive action' by the Swiss authorities.
