The CEO of UBS issued a statement with some warnings about the takeover of Credit Suisse.
Sergio Ermotti, CEO of UBS bank, made statements about the Credit Suisse acquisition. Ermotti said that with this takeover, some painful decisions will come with it.
UBS CEO Sergio Ermotti Evaluates Credit Suisse Takeover Process
UBS had agreed to take over a small Swiss bank in March and said it aims to complete the deal quickly. CEO Sergio Ermotti said he hopes this deal will be completed soon and has received more than 170 approvals from regulators.
Ermotti emphasized that this acquisition is an acquisition, not a merger, and stated that Credit Suisse has valuable people and talents. Talent in the acquired bank could play a larger role in the combined group, he said. Credit Suisse CEO Ulrich Koerner also joined this combined leadership team.
Ermotti argued that the new combined asset is not too big for Switzerland, noting that the bank will have a balance sheet of $1.6 trillion. He also said that size matters in the banking industry.
Ermotti made the following statements in his statements:
“We will not be able to create short-term job opportunities for everyone. Synergies are part of the story. We need to take a serious look at the cost base of independent and combined organizations and create a sustainable outcome. This takeover process will bring along painful decisions.”
