Credit Suisse will be delisted! A large number of executives plan to leave the new company, and UBS imposes restrictions | prohibitions | plans after completing the acquisition
UBS Group announced on the 12th that it has completed its acquisition of Credit Suisse. After the acquisition is completed, UBS will inevitably face a complex internal integration period. Previously, UBS CEO Elmoti had warned that the new company would make "painful" decisions to reduce costs in the future.
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UBS's acquisition of Credit Suisse still faces many challenges
Within less than three months of the Swiss government facilitating this transaction, UBS completed its acquisition of Credit Suisse. This also means a new beginning. The two banks that were once competitors have now become one family, and in the future, this massive institution may face a complex integration period involving layoffs, restructuring, and so on.
Sergio Elmotti, chief executive of UBS: we have been competing fiercely for more than 50 years, and now we are together, we are a team.
Credit Suisse will delist from the Swiss Stock Exchange and the New York Stock Exchange in the United States
After the acquisition is completed, Credit Suisse and its American Depositary Shares will be delisted from the Swiss Stock Exchange and the New York Stock Exchange. Credit Suisse shareholders will receive 1 UBS share for every 22.48 shares of Credit Suisse shares held. The expanded UBS will become a mega bank with a total balance sheet value of over $1.6 trillion and a total workforce of over 120000 people.
An analysis suggests that UBS will face multiple challenges in the future. Firstly, how should two banks with different cultures adjust their operational models and workflows after the merger?
British media: UBS's restricted list lists nearly 24 "red lines"
According to the Financial Times, UBS executives have developed a list of restrictions, listing nearly 24 "red lines" that prohibit Credit Suisse employees from engaging in a series of activities after the merger, including a ban on accepting new customers from high-risk countries and a ban on launching new products without the approval of UBS managers.
A large number of Credit Suisse executives plan to leave the new company. Over 10% of Credit Suisse employees have left in the past few months
The second challenge is talent loss. According to an internal memo seen by CNBC, senior executives at Credit Suisse are planning to leave. According to a UBS spokesperson, only one-fifth of the 160 leadership positions in the merged bank come from Credit Suisse.
In addition, the CEO of UBS stated that about 10% of its employees have left the bank in the past few months. But it was also seen that after the announcement of the merger, new talents were attracted to join from outside.
Finally, the analysis also pointed out challenges in the macro environment. Currently, the global credit squeeze will continue to affect the businesses of Credit Suisse and UBS.
UBS: First performance report released at the end of August after merger and acquisition
UBS disclosed on its official website that it will postpone its quarterly financial report to August 31st, when it will see the first performance report after the merger of the two banks. Another noteworthy sign is that the recent turmoil in the banking industry in Europe and America has gradually shifted wealth management business from the West to Asia, with many Asian wealth management companies becoming beneficiaries.
