UBS Group has announced that Ulrich Koerner, CEO of Credit Suisse, will be part of the new leadership team of the combined group after UBS takes over its Swiss rival. UBS has also promoted Todd Tucker to group chief financial officer, succeeding Sarah Youngwood, who will leave after the deal closes.
As part of the Swiss government-backed rescue, UBS is acquiring Credit Suisse, which could receive as much as 250 billion Swiss francs ($281.25 billion) of state support. UBS CEO Sergio Ermotti has largely relied on UBS executives to form his new team, and Andreas Venditti of Vontobel noted that there are fewer changes than expected.
UBS said that Credit Suisse executive board members will report to both their relevant UBS executive board member and Koerner, who will be responsible for Credit Suisse’s operational continuity and client focus, while supporting its integration.
However, it is unclear if Koerner will remain in his position after the integration is completed. UBS also stated that it will consider all options for Credit Suisse’s Swiss business and will communicate further on the matter in the coming months. Options under consideration reportedly include a sale or an initial public offering of Credit Suisse’s domestic unit.
After the legal closing of the transaction, UBS Group AG will have two separate parent companies – UBS AG and Credit Suisse AG – throughout the integration process, which is expected to take three to four years. Each institution will continue to have its own subsidiaries and branches, serving its clients and dealing with counterparties.