Swiss banking giant UBS announces deal to buy Credit Suisse for $3.2 billion in 'emergency rescue'

Swiss banking giant UBS on Sunday said it is buying Credit Suisse, its smaller rival, in what the bank called an "emergency rescue" in an attempt to prevent more turmoil in the global banking market.

The purchase price is $3.2 billion, according to NBC News, and is expected to create the world's leading wealth manager with $5 trillion in invested assets, UBS said.

"This acquisition is attractive for UBS shareholders but, let us be clear, as far as Credit Suisse is concerned, this is an emergency rescue," UBS Chairman Colm Kelleher said.

The transaction will ensure that Credit Suisse shareholders receive 1 UBS share for 22.48 Credit Suisse shares.

The merger will save more than $8 billion annually by 2027 because of cost reductions, UBS said.

"Given recent extraordinary and unprecedented circumstances, the announced merger represents the best available outcome," Credit Suisse Board of Directors Chairman Axel Lehmann said.

Swiss Finance Minister Karin Keller-Sutter said the government "regrets that the bank, which was once a model institution in Switzerland and part of our strong location, was able to get into this situation at all."

The purchase of Credit Suisse, which was founded in 1856, comes after two major U.S. banks collapsed earlier this month.