This post was originally published on this site
In its statement outlining the new operating model and leadership team following the recent announcement of the planned acquisition of Credit Suisse, UBS said the legal close of the deal is expected to take place in the next few weeks.
The combined entity will operate as a consolidated banking group, they stated. However, UBS AG and Credit Suisse AG will “operate independently for the foreseeable future,” with UBS carrying out the integration in a phased approach.
UBS agreed to pay $3.2 billion for the controversial emergency rescue of Credit Suisse in an all-share deal, with concerns about a potential collapse of CS after a crisis of confidence among depositors and shareholders.
Once the deal is closed, UBS will initially manage the two separate parent companies, with each institution having its own subsidiaries and branches.
UBS said that with Körner’s knowledge of both organizations, “he will be responsible for ensuring Credit Suisse’s operational continuity and client focus while supporting the integration process.”
The combined entity will operate with five business divisions, seven functions, and four regions, as well as Credit Suisse AG, stated UBS. Each will be represented by an Executive Board member, with all reporting to the Group’s CEO, Sergio Ermotti.
“This is a pivotal moment for UBS, Credit Suisse, and the entire banking industry,” said Ermotti. “Together, we will solidify and represent the Swiss model for finance around the world, one that is capital-light, less reliant on taking risk and anchored by stability and high-touch service.”
