UBS' acquisition of Credit Suisse completed; changes in leadership made

Updated : Jun 12, 2023 18:40
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Editorji News Desk

UBS on Monday disclosed changes to the executive board of Credit Suisse AG in an internal memo that was distributed after the Swiss bank declared it had formally concluded the merger of its erstwhile rival.

Ulrich Koerner, CEO of the new UBS subsidiary Credit Suisse AG, wrote that departing personnel include Chief Financial Officer Dixit Joshi and General Counsel Markus Diethelm.

The message also stated that Andre Helfenstein, the head of Credit Suisse's domestic operations, will continue in his position along with a number of other new appointments.

Impact of the acquision

With this acquisition, Credit Suisse's independent existence ends after 167 years. UBS, combined with Credit Suisse's staff is now set to operate with 120,000 employees.

Earlier, the Swiss newspaper Tages-Anzeiger reported that after the deal is closed, The giant bank could reduce its workforce by 20%-30%.

Post acquisition, Credit Suisse and its American Depositary Shares will be delisted from the New York Stock Exchange and SIX Swiss Exchange. Holders of Credit Suisse shares will get one UBS share for every 22.48 Credit Suisse shares held.

Background of the deal 

Earlier in June the multinational Investment bank UBS had said that it will complete the takeover of Credit Suisse as early as 12th June. The merger is expected to create a giant balance sheet of $1.6 trillion.

In a deal orchestrated by regulators, banking giant UBS took over Credit Suisse for almost $3.25 billion. Swiss authorities pushed for UBS to take over its smaller rival after a plan for Credit Suisse to borrow up to 50 billion francs ($54 billion) failed to reassure investors and the bank's customers.

 

 

Credit Suisse Bank

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