2023-05-09 07:38:11 ET
UBS Group ( NYSE: UBS ), planning to close its acquisition of Credit Suisse ( NYSE: CS ) in the next few weeks, unveiled on Tuesday its new operating model in which UBS and Credit Suisse will initially operate independently "for the foreseeable future" with an eye to carrying out the integration in a phased approach.
"The integration of the businesses and legal entities will take time," said UBS Group ( UBS ) CEO Sergio Ermotti. "But adding Credit Suisse ( CS ) to UBS’s highly capital-accretive business model, diversified revenue streams, disciplined risk management and balance sheet for all seasons will benefit our clients, employees, investors, the economies we serve and the wider financial system."
UBS Group ( UBS ) will initially manage two separate companies — UBS AG and Credit Suisse AG. The UBS Group board of directors and the UBS Group executive board will hold overall responsibility for the consolidated group.
Credit Suisse CEO Ulrich Körner will join the UBS Group executive board when the transaction closes. He rejoins UBS, where he had led the asset management division for six years and had served as chief operating officer previously. In 2021 he moved to Credit Suisse to head up the asset management unit.
Pending further integration, Credit Suisse AG ( CS ) will continue to rely on its established governance and risk control framework, though some new policies will be put in place to ensure that UBS Group ( UBS ) has effective oversight, the company said.
Todd Tuckner will become Group chief operating officer at the close of acquisition. He'll become a group of the Group executive board effective immediately. He'll succeed Sarah Youngwood, who decided to leave UBS ( UBS ) after the transaction closes. Tuckner is currently CFO and head of Business Performance and Risk Management for Global Wealth Management.
Michelle Bereaux will be Group integration officer. She has been with UBS for almost 23 years and held various leadership roles across the firm.
UBS ( UBS ) said it will provide regular updates on the integration process over time.
In Zurich trading, UBS Group ( UBS ) shares have slipped 0.5% ; in U.S. premarket trading, UBS shares have edged down 0.1% and Credit Suisse ( CS ) American depositary shares fell 1.0% .
In March, UBS ( UBS ) agreed to acquire Credit Suisse in a $3.25B stock deal that also wiped out CHF 16B of AT1 Capital notes.
More on UBS and Credit Suisse:
- UBS weighed rescuing Credit Suisse months before Swiss government arranged deal
- Credit Suisse investors sue Swiss regulators over $18B debt writedown
- Credit Suisse suffers outflows of $5.6B since UBS deal
- Credit Suisse and UBS Merger: Not Without Consequences
- UBS modifies share buyback program following Credit Suisse takeover
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UBS expects to close Credit Suisse deal in few weeks, unveils new model