Investing.com - UBS Group AG (NYSE:UBS), the prominent Swiss financial institution, revealed that it anticipates finalizing its acquisition of fellow banking giant Credit Suisse (SIX:CSGN) within the coming weeks. Upon completion, both banks will operate as part of a unified "consolidated banking group," according to an official statement from UBS.
In March, Switzerland's regulatory authorities orchestrated an emergency bailout for Credit Suisse by facilitating a deal with UBS worth 3 billion Swiss francs ($3.37 billion). This rapid intervention occurred as mounting concerns among depositors and shareholders jeopardized the stability of the historic 167-year-old bank.
Upon announcing this imminent merger on Tuesday, UBS confirmed that Ulrich Koerner, CEO of Credit Suisse, would join the executive board overseeing their new joint venture once completed. Post-acquisition plans maintain that both banks' brands will continue operating independently for an unspecified period while implementing a gradual integration strategy.
As part of this organizational restructuring process following the acquisition's close date, each bank will maintain separate subsidiaries and branches under overall management by the current UBS board members and executive team. Additionally, Koerner – who spearheaded extensive strategic overhauls at struggling Credit Suisse since taking charge in July 2022 – is set to play a crucial role in ensuring operational continuity during these transitional phases.
Todd Tuckner assumes CFO responsibilities for this consolidated entity after Sarah Youngwood steps down post-acquisition. Furthermore, five business divisions (including four regions alongside seven functions) comprise this combined firm structure; each division features representation by one board member reporting directly to Sergio Ermotti.
Ermotti expressed his excitement about what he deems "a pivotal moment" not only for both companies but also within broader financial industry contexts. He envisions this merger as a means to "solidify and represent the Swiss model for finance around the world," emphasizing its capital-light approach, reduced risk-taking, and unwavering commitment to stability and exceptional service.
This strategic union of UBS's robust business model with Credit Suisse's extensive resources is anticipated to yield significant benefits for their clients, employees, investors, respective economies served – ultimately contributing positively towards global financial systems at large.