- The Swiss giant said legal closing of the acquisition is expected within the next few weeks, and the combined entity will operate “as a consolidated banking group,” UBS said in a statement.
- Swiss authorities brokered a controversial bailout of Credit Suisse by UBS for CHF3 billion ($3.37 billion) over the course of a weekend in March.
Ulrich Korner, CEO of Credit Suisse Group AG, during a Bloomberg TV interview in London, UK, on Tuesday, March 14, 2023.
Holly Adams | bloomberg | Getty Images
UBS announced on Tuesday that Ulrich Korner, CEO of Credit Suisse, will join the executive board of the new combined entity once its emergency purchase of the affected bank is completed.
The Swiss giant said legal closure of the takeover is expected within the next few weeks, and the combined entity will operate as a “unified banking group”.
The bank said in a statement that the Credit Suisse brand will operate independently for the “foreseeable future” as UBS consolidates the business in a “phased approach”.
Swiss authorities brokered a controversial bailout of Credit Suisse by UBS for 3 billion Swiss francs ($3.37 billion) over the course of a March weekend, as a crisis of confidence between depositors and shareholders threatened to topple the 167-year-old institution.
UBS confirmed that it would initially manage the two separate companies upon closing of the transaction, with each organization continuing to operate its subsidiaries and subsidiaries while UBS’ Board of Directors and Executive Board would have full responsibility for the consolidated group.
And UBS confirmed that Korner, who took over the ailing Credit Suisse bank in July 2022 and immediately launched a massive strategic overhaul aimed at reversing the bank’s chronic failure to take losses and manage risk, will join the board.
“With his knowledge of both organisations, he will be responsible for ensuring Credit Suisse’s operational continuity and customer focus, while supporting the integration process,” UBS said.
UBS veteran Todd Tucker will become the group’s chief financial officer, succeeding Sarah Youngwood, who decided to step down after the deal closed.
The combined company will operate with five business divisions, seven functions and four regions as well as Credit Suisse, each represented by a board member reporting to UBS CEO Sergio Ermotti.
Ermoti said this was a “pivotal moment for UBS, Credit Suisse and the entire banking sector”.
“We will promote and represent the Swiss model of financing worldwide, one that is capital-light and less reliant on risk and underpinned by stability and high-touch service,” Ermotti said in a statement.
“Adding Credit Suisse to UBS’s highly capital-accumulating business model, diversified revenue streams, disciplined risk management and all-season balance sheet will benefit our customers, employees, investors, the economies we serve and the broader financial system.”
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