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The merger between UBS and Credit Suisse will take at least four years


UPS It worked hard to persuade its shareholders to merge with Credit SuisseIt will “strengthen” the two banksbut he is also forced to admit it These benefits will only appear in the long term.

head of ubs, Colm Kelleherbefore the annual shareholder meeting held in Basel, had admitted this It will take three to four years to fully absorb Credit Suisse. Kelleher presented the timeline for the full merger, which excludes the divestment of the non-core portfolio of Credit Suisse’s investment banking unit, and foresees a four-year period for it to be effective. Estimated US$8 billion annual cost reductionWhich will not reach the entity’s accounts until 2027.

So I won’t It is neither a quick nor a cheap process. Kelleher supports the $3.25 billion deal on the sole argument that swift action was necessary to maintain financial sector stability. that sense of urgency This also prompted the Swiss authorities to evade shareholder approval, which is normally required for a deal of this size, a development he describes as “unfortunate”.

“I understand that not all stakeholders in UBS and Credit Suisse are happy with this approach. However, All parties, in particular the Swiss authorities, consider this solution to be the best of all available optionsHe explained to the visibly angry investors the agreement. In case anyone thought of jumping on such an uncertain ship, it has also been suggested that opting out of Credit Suisse still carries a “significant foreclosure risk”.

Despite that blunt rhetoric, or perhaps precisely because of it, UBS shareholders voted in favor today Keeler’s re-election as president with 89.9% of the vote. The entire Board of Directors will reiterate and assume the significant challenge of effectively implementing the merger, In which Sergio Ermotti will play a decisive role, who returns to the entity as CEO to contribute his knowledge and contacts at certainly the most sensitive moment in its history. Referring to March 19, Keeler described it as “a historic day and one we hope will never happen again”. “However, It was a huge milestone, not only for UBS and Credit Suisse, but also for Switzerland. And for the entire global financial sector.”

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Kelleher presented his plans and details of the merger. “Credit Suisse will cease to be an independent company,” he said, for example, UBS would “significantly” reduce investment banking capital below 25% of weighted assets and Accelerate expansion plans to ‘meet huge demand’ of your services.

Deputy Chairman of the Board , Lucas Gavilerwas responsible for detection One of the most painful points of integration, at least in the face of public opinion. Gähwiller guarantees the process will be “completely transparent” and once decisions are made, they will be informed of it, hinting that it is still “too early” to give data about impending job cuts. “It is too early to speculate, but it is clear that in the long run there will be synergies” between the two banks that justify staff cuts, he said.

However, he rejected that the merger would reduce diversity in the Swiss financial sector, and argued that “only 20% of the population consider UBS or Credit Suisse as their bank of habit”. He denied that the resulting bank was “too big”, Despite the fact that it currently accounts for twice the GDP of Switzerland. Once fully integrated, the new company will oversee more than $5 trillion in assets (approximately €4.6 billion), making it In the fourth largest bank in the world.

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