- Swiss conglomerate UBS said in a statement that a legal conclusion of the acquisition is expected in the next few weeks, and that the combined entity will operate as an “integrated banking group”.
- Swiss authorities brokered Credit Suisse’s controversial emergency rescue by UBS for 3 billion Swiss francs ($3.37 billion) over a weekend in March.
Ulrich Koerner, Chief Executive Officer of Credit Suisse Group AG, during a Bloomberg Television interview in London, UK, Tuesday, March 14, 2023.
Holly Adams | Bloomberg | Good pictures
Credit Suisse CEO Ulrich Koerner will join the management team of the new joint venture once the emergency purchase of the stricken bank is completed, UBS announced on Tuesday.
The Swiss firm said a legal conclusion of the acquisition is expected in the next few weeks and that the combined entity will operate as an “integrated banking group”.
As the UPS business is integrated in a “phased approach,” the Credit Suisse brand will operate independently “for the foreseeable future,” the bank said in a statement.
A crisis of confidence among brokers, depositors and shareholders threatened to topple the 167-year-old firm after Swiss authorities’ controversial emergency rescue of Credit Suisse by UBS for 3 billion Swiss francs ($3.37 billion) over a weekend in March.
UBS confirmed that it will initially manage two separate entities upon closing of the deal, with each entity continuing to operate its own subsidiaries and branches while the UBS board of directors and management team will have overall responsibility for the combined group.
Koerner, who took over ailing Credit Suisse in July 2022 and immediately began a major strategic overhaul aimed at reversing the bank’s chronic loss and risk management failures, will join the board, UBS confirmed.
“With his knowledge of both companies, he will be responsible for ensuring Credit Suisse’s operational continuity and client focus while supporting the integration process,” UBS said.
UBS veteran Todd Doughner will take over as group chief financial officer from Sarah Youngwood, who has decided to step down after the transaction closes.
The combined company will operate with Credit Suisse across five business units, seven functions and four regions, each with a board member reporting to UBS CEO Sergio Ermotti.
Ermotti said it was “a pivotal moment for UBS, Credit Suisse and the entire banking industry.”
“Together we will consolidate and represent the Swiss model for finance worldwide, which is capital-light, less reliant on risk-taking and anchored by stability and high-touch service,” Ermotti said in a statement.
“Adding Credit Suisse to UBS’s highly capital-intensive business model, diversified earnings, disciplined risk management and all-weather balance sheet will benefit our customers, employees, investors, the economies we serve and the broader financial system.”