Anyone who thought the formal takeover of Credit Suisse would be a leisurely event until the summer did not reckon with UBS CEO Sergio Ermotti's determination.
Ermotti is fulfilling a professional dream with the takeover of Credit Suisse. In his first stint as CEO of UBS, he said he wanted to handle a transaction of a similar magnitude, which was something that eluded him. Until now. With the forced takeover of Credit Suisse by UBS, he now has his chance.
Fast, but not Rushed
During an appearance at the industry trade fair Finanz '23 on Wednesday, Ermotti said the formal takeover of Credit Suisse should be completed as early as the end of this month or the beginning of June. While UBS will «act quickly», it is «not in a hurry,» the news agency «AWP» quoted Ermotti saying. Until the transaction is completed, communication will be limited.
While perhaps not in a hurry, Ermotti is nevertheless pushing the pace, even though it is already at breakneck speed in the view of some observers. In addition to obtaining the approval of foreign regulators, there is also the matter of keeping a precise record of everything being bought from Credit Suisse. He reemphasized that UBS is keeping all options open on the takeover.
Are Losses Unlikely?
It's known that UBS is primarily interested in asset management, wants to wind up CS's trading division, and operate in the Swiss market with two brands for now. Digital head Mike Dargan from UBS and Credit Suisse's operational head Francesca McDonagh are said to be in charge of implementing the merger and are likely finding little sleep at the moment.
Ermotti presented the picture of a highly confident chief executive to his audience. He said UBS will do everything to ensure that there are no taxpayer losses resulting from the takeover. He added that losses for the Swiss government and Swiss National Bank from the liquidity loans are extremely unlikely.
