- The Swiss giant said the legal closing of the acquisition is expected within the next few weeks, and that the combined entity will operate as a “consolidated banking group,” UBS said in a statement.
- Swiss authorities brokered the controversial emergency rescue of Credit Suisse by UBS for 3 billion Swiss francs ($3.37 billion) over one weekend in March.
Ulrich Koerner, chief executive officer of Credit Suisse Group AG, in an interview with Bloomberg Television in London, UK, on Tuesday, March 14, 2023.
Holly Adams | Bloomberg | Getty Images
UBS announced on Tuesday that Credit Suisse CEO Ulrich Koerner will join the executive board of the new joint entity once its emergency purchase of the stricken bank is completed.
The Swiss giant said the legal closing of the acquisition is expected within the next few weeks, and that the combined entity will operate as a “consolidated banking group.”
The Credit Suisse brand will operate independently for the “foreseeable future” while UBS integrates the business in a “phased approach,” the bank said in a statement.
Swiss authorities put together Credit Suisse’s controversial emergency rescue of UBS for 3 billion Swiss francs ($3.37 billion) over the course of a weekend in March, as a crisis of confidence among depositors and shareholders threatened to topple the 167-year-old institution.
UBS confirmed that it will initially manage the two separate companies upon closing the deal, with each institution continuing to operate its own subsidiaries and branches while the UBS board of directors and executive board will have overall responsibility for the combined -same group.
Koerner, who took over ailing Credit Suisse in July 2022 and immediately launched a massive strategic overhaul aimed at reversing the bank’s chronic losses and risk management failures, will join the board, UBS confirmed.
“With his knowledge of both organizations, he will be responsible for ensuring Credit Suisse’s operational continuity and client focus, while supporting the integration process,” UBS said.
UBS veteran Todd Tuckner will become chief financial officer for the group, replacing Sarah Youngwood, who decided to step down after the transaction closed.
The combined company will run five business divisions, seven functions and four regions in addition to Credit Suisse, each of which is represented by 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, one that is capital-light, less dependent on risk-taking and anchored by stability and high-touch service,” Ermotti said in a statement.
“The addition of Credit Suisse to UBS’s massive capital-accretive business model, diversified income streams, disciplined risk management and balance sheet for all seasons will benefit our clients, employees, investors, the economies we serve and the broader financial system.”
