Arend Wegman
UPS group (New York Stock Exchange: UBS), and plans to close its acquisition of Credit Suisse (New York Stock Exchange: CS) in the next few weeks, it unveiled on Tuesday its new operating model in which UBS and Credit Suisse will initially operate independently “for the benefit of foreseeable future” with a view to implementing integration in a phased approach.
“It will take some time for the companies and legal entities to integrate,” said Sergio Ermotti, CEO of UBS Group (UBS). “But the addition of Credit Suisse (CS) 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.”
UBS Group (UBS) will initially operate two separate businesses – UBS AG and Credit Suisse AG. The UBS Group Board of Directors and the UBS Executive Board will have full responsibility for the consolidated Group.
Credit Suisse CEO Ulrich Korner will join the executive board of the UBS Group upon closing of the transaction. He returned to UBS, where he led the asset management division for six years and previously served as chief operating officer. In 2021 he moved to Credit Suisse to head the Asset Management Unit.
Pending further integration, Credit Suisse AG (CS) will continue to rely on its well-established framework of governance and risk control, although some new policies will be put in place to ensure that UBS Group (UBS) has effective oversight.
Todd Tucker will become Group Chief Operating Officer at the close of the acquisition. A group of members of the Executive Board of Directors of the Group will become effective immediately. He will succeed Sarah Youngwood, who decided to leave UBS (UBS) after the deal closed. Tucker is currently CFO and Head of Business Performance and Risk Management for Global Wealth Management.
Michelle Pirro will be responsible for group integration. She has been with UBS for nearly 23 years and has held various leadership positions in the company.
UBS (UBS) said it will provide regular updates on the integration process over time.
In Zurich trades, you own shares of UBS Group (UBS) decreased 0.5%; In US pre-market trading, shares of UBS rose decreased 0.1% Credit Suisse (CS) American Depositary Shares decreased 1.0%.
In March, UBS (UBS) agreed to acquire Credit Suisse in a $3.25 billion equity deal, which also eliminated CHF16 billion in AT1 Capital bonds.