Skip to content Skip to Search
Skip navigation

SNB plan to take 40% Credit Suisse stake halted by regulator

Credit Suisse in Bern Reuters/Arnd Wiegmann
Saudi National Bank became an anchor investor in Credit Suisse’s $4.3 billion capital raise in October 2022

Saudi National Bank (SNB) wanted to increase its stake in Credit Suisse, Switzerland’s second-largest bank, to 40 percent from 9.88 percent, Zürich-based Blick daily reported.

However, Swiss regulator Finma stopped the bank from making the move.

Finma must approve a foreign investor taking a stake of more than 10 percent in a major Swiss bank, the newspaper reported citing informed sources.

In March, the Saudi bank’s chairman Ammar Al Khudairy said during an interview with Bloomberg TV that investing any more would increase its current 10 percent stake in the Swiss lender, leading to regulatory issues.

“If we go above 10 percent, all new rules kick in, whether it be by our regulator or the Swiss regulator or the European regulator,” he said.

UBS agreed to buy Credit Suisse for three billion Swiss francs ($3.4 billion) on March 19 in a rescue plan driven by Swiss authorities.

In May, SNB’s nearly 10 percent shareholding in Credit Suisse was converted to 0.5 percent of UBS following the merger of the two Swiss lenders.

SNB, 37 percent owned by Saudi Arabia’s Public Investment Fund, became an anchor investor in Credit Suisse’s $4.3 billion capital raise, which began in October to fund the bank’s revamp and restructuring. 

The stake, initially worth 1.4 billion Swiss francs ($1.53 billion), has since lost more than 500 million francs, according to a Bloomberg report.

The Qatar Investment Authority (QIA), the Gulf state’s sovereign wealth fund, had increased its stake in Credit Suisse to just under 7 percent in January, becoming the Swiss bank’s second-largest shareholder behind SNB.

QIA bought 139.03 million shares in the Swiss lender, bringing its ownership to 6.87 percent.

Another Saudi Arabian conglomerate, Olayan Group, owned a stake of about 3 percent, Eikon data showed.

Latest articles

A welder at work in Ras Al Kaimah. The northern emirates will benefit from lower electricity tariffs under a new scheme for local manufacturers in the UAE

UAE to direct additional $6bn to local manufacturers

The UAE is to direct an additional AED23 billion ($6.3 billion) to local manufacturers as it strives to develop its homegrown sectors and diversify its economy away from a reliance on hydrocarbons. Abu Dhabi state oil company Adnoc will expand its local manufacturing procurement programme for critical industrial products by AED20 billion to AED90 billion […]

Workers at a Riyadh construction site. The Tonomus competition aims to find innovation in the sector

Saudi Arabia races to find technologies for futuristic cities

Saudi Arabia is urgently seeking new technologies for its construction and real estate sectors as it races to make good on its pledge to build futuristic multi-billion-dollar cities. Tonomus, a subsidiary of crown prince Mohammed bin Salman’s $500 billion signature Neom development, has joined forces with the Public Investment Fund to launch a competition offering […]

Riyadh Air Comac C919

Riyadh Air not buying from China’s Comac ‘for now’

Riyadh Air, Saudi Arabia’s new national carrier, will not consider China’s Comac for its narrowbody order to be announced later this year. However, the airline said it saw a future in Saudi Arabia for Comac, the Commercial Aircraft Corporation of China, as the Chinese alternative to Boeing and Airbus.  “The narrowbody order is in its […]

Organisations have protested US investment bank BlackRock’s participation in the bid to buy a stake in Malaysia Airports Holdings

Malaysian airport deal faces Gaza war backlash

Plans by a consortium, including the UAE’s largest sovereign wealth fund, to buy a stake in Malaysian airports have been hit by protests against the deal from local business organisations in the Asian country. As many as 22 organisations have called upon the Malaysian government to block US investment bank BlackRock’s participation in the bid […]