UBS reportedly in negotiations for acquisition of struggling institution Credit Suisse.

According to sources, the Financial Times has reported that UBS Group (NYSE:UBS) is currently in discussion to purchase some or all of Credit Suisse (NYSE:CS). If this deal goes through, it would be the most significant banking merger in Europe since the economic downturn in 2008.

The talks, arranged by the Swiss National Bank and Supervisory Authority for Swiss Financial Markets to regain trust in the banking industry, are happening shortly after news broke that the central bank provided Credit Suisse (CS) with a $54 billion emergency credit facility.

At the end of trading on Friday, UBS (UBS) was valued at $57.9 billion in the market, while Credit Suisse (CS) had a market worth of $8.6 billion after experiencing a 73% drop in its stock value over the year.

According to an individual who spoke to the FT, the two banks from Switzerland are discussing various options. However, it was also mentioned that UBS is currently examining the possible negative consequences a possible agreement may have on the bank itself.

According to a source speaking to the FT, the SNB is optimistic that a resolution will be reached prior to the market opening on Monday. Bear in mind, however, that there is no assurance that a deal will be made.

Reports indicated that UBS and Credit Suisse expressed their opposition towards the notion of a compelled merger during Thursday's discussions.