Credit Sussie and UBS weigh merger

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Just saw on Bloomberg that CS and UBS are weighing a potential merger. Could be full bank, or just back office.

 

Dunno if anyone who works there could shed some light on this or if they heard anything. 

Also wonder what's every ones thoughts on how this would affect positions/market. 

Comments (46)

 
  • Analyst 1 in IB - Ind
Sep 14, 2020 - 11:29am

Haven’t heard anything but there was always talks to merge UBS with some other bank (whole/just IB). I don’t think it’ll happen.

Array

 
Sep 15, 2020 - 11:58pm

The combined entity would keep the UBS name and the Credit Suisse name would dissapear. UBS current chairman and CEO would lead the combined company, which again would be named UBS. I know that this is predominantly an IB focused site, but you have to remember that for the swiss and for these two companies, wealth management is their main focus and strongest business. UBS is the world's largest wealth manager, so they would want to keep the name. Also did a quick stock lookup, and UBS's market cap is nearly twice the size of UBS. Not sure if this is a merger or more or an acquisition by UBS. 

We're not lawyers. We're investment bankers. We didn't go to Harvard. We Went to Wharton!
 
  • Incoming Analyst in IB-M&A
Sep 14, 2020 - 2:01pm

Took CS for the exit opps... now i'm afraid they'll be heavily diluted by UBS 

Array
 
  • Incoming Analyst in IB-M&A
Sep 14, 2020 - 2:24pm

Should incoming summer analysts plan on re-recruiting?

Array
 
Sep 16, 2020 - 12:01am

This was not for the entire companies or for the banks. The UBS/DB merger talks were to merge the DB asset management subsidiary (named DWS) with UBS Asset Management. It would have been a merger of equals, but both companies had disagreements who would control the combined asset manager so things broke off. These current talks are much more advanced and at a bigger scale with actually combining the entire banks, not just the asset managers.

We're not lawyers. We're investment bankers. We didn't go to Harvard. We Went to Wharton!
 
  • Analyst 1 in IB - Ind
Sep 14, 2020 - 2:50pm

How do exit ops at UBCS compare to RBC/DB?? /s

Array
 
Most Helpful
  • Analyst 2 in IB - Ind
Sep 14, 2020 - 3:31pm

Hilarious that people think UBS dilutes the brand value of CS. Both banks prioritize wealth management over investment banking, and UBS is stronger here.

 
  • Analyst 1 in IB-M&A
Sep 14, 2020 - 8:05pm

Would it be acceptable to change my linkedin status from "incoming ubs IB analyst" to "incoming credit Suisse IB analyst"? Want to make sure I get access to all the superior buyside headhunters.

Array
 
  • Prospect in Other
Sep 14, 2020 - 9:25pm

love me some Credit Sweets nom nom nom

Array

 
  • Intern in IB - Ind
Sep 15, 2020 - 8:51am

I heard on bloomberg that they're trying to streamline their back office operations to cut costs. I can only assume that the job cuts would affect the back-office a lot more- to everyone asking about lay-offs. 

 
Sep 15, 2020 - 9:01am

I heard on bloomberg that they're trying to streamline their back office operations to cut costs. I can only assume that the job cuts would affect the back-office a lot more- to everyone asking about lay-offs. 

Whenever two companies come together there is always overlap. For banking, they wouldn't have two groups covering the exact same companies. 

 
  • Analyst 1 in IB-M&A
Sep 15, 2020 - 12:52pm

Ironic that a forum for M&A have people only focus on brand equity in this transaction. UBS has outperformed CS in terms of revenue growth, net income, operating margin, RoA, stock, etc etc. in the last few years. This merger has absolutely nothing to do with how well their NYC analysts will recruit for buy side.

 
Sep 15, 2020 - 1:07pm

I kinda doubt this will happen tbh. It seems like they have just brought it up as a strategic option for the long term, but I am sure they have a bunch of other strategic alternatives they are considering as well. M&A is often a part of these discussions and I imagine CS would make the most sense for UBS if they wanted to expand by merger of equals. 

Dayman?
 
  • Analyst 3+ in RE - Res
Sep 15, 2020 - 5:44pm

my ex girlfriend works in the back office at UBS, I hope this creates 'redundancies' 

Array
 
Sep 15, 2020 - 10:04pm

Tons of synergies, home offices in Zurich are literally across the street from each other. UBS has very strong ER platform and combined capital markets would be strong. UBS Wealth Mgmt. with CS = wealth monopoly. Both IB's are weak but together will have a much bigger balance sheet to work with so they can finally run a competitive investment bank, consolidate back office in Switzerland and the U.S. 

Only way they can truly compete on the same level as the U.S. bulges

 
Sep 17, 2020 - 5:43pm

I don't think they want to compete with the US bulges in IB; both companies individually have been very explicit about moving away from this competition. They want to merge and reduce costs while ideally retaining the best athletes. They want to improve RORWAs via their combined wealth and asset management business, so they are not going to double down on the IB strategy.

Be excellent to each other, and party on, dudes.
 
Sep 18, 2020 - 6:31pm
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