The banking world is abuzz with news of UBS taking a major step towards integrating Credit Suisse into their business operations. With four top consultants shortlisted for the project, the stage is set for an exciting phase of collaboration and transformation in the financial industry. In this blog post, we delve deeper into what this move means for both banks and explore how it could shape the future of finance. So buckle up and join us on this thrilling ride!
UBS is preparing to integrate Credit Suisse
UBS is preparing to integrate Credit Suisse and has shortlisted four consultants to assist with the process. The integration is expected to take place over the next two years and will result in the creation of a new Swiss banking giant.
UBS has been working closely with Credit Suisse for several months on the potential integration and has now reached the point where it is ready to begin formal talks with the Swiss government and regulators. The four consultants that have been shortlisted are all experienced in large-scale mergers and acquisitions, and UBS will be working with them to finalise the details of the integration.
The aim of the integration is to create a stronger, more efficient bank that can compete more effectively on a global scale. It is expected that there will be some job losses as a result of the merger, but UBS has committed to redeploying as many employees as possible into other roles within the bank.
The four consultants shortlisted by UBS are:
Banking industry consultant Oliver Wyman
Investment bank Goldman Sachs
Management consultancy firm McKinsey & Company
Accountancy firm Ernst & Young
The four shortlisted consultants are:
The four shortlisted consultants are: Boston Consulting Group, McKinsey & Company, Oliver Wyman, and Roland Berger. All four firms have been involved in large-scale corporate restructurings and have experience working with banks.
McKinsey & Company
McKinsey & Company is one of the four shortlisted consultants for UBS’s upcoming credit Suisse integration project. McKinsey has a long history of working with major banks on large-scale projects, and its team includes many experienced consultants who are familiar with the ins and outs of bank mergers.
The other three shortlisted firms are Boston Consulting Group, Oliver Wyman, and Roland Berger. All four firms will now compete for the final contract, which is expected to be worth tens of millions of dollars.
The UBS-Credit Suisse merger was first announced in October 2019 and is still in the early stages. The two banks have not yet set a date for completion, but it is expected to take several years. In the meantime, both banks are continuing to operate independently.
Boston Consulting Group
The Boston Consulting Group is one of four shortlisted consultants for UBS’s planned integration of its Swiss banking operations with those of Credit Suisse.
BCG has been hired to advise on the feasibility and structure of a potential merger between the two banks, people familiar with the matter said. The other three firms shortlisted are McKinsey & Company, Oliver Wyman and Roland Berger.
UBS is expected to make a decision on which consultant to hire in the coming weeks, the people said. The integration project is still in its early stages and no decisions have been made about whether or how to proceed with a merger.
BCG declined to comment.
Bain & Company
Bain & Company is one of four consultancy firms shortlisted to advise UBS on its potential merger with Credit Suisse, a move that would create a Swiss banking behemoth.
Bain has been hired by UBS to provide “integration planning expertise”, according to people familiar with the matter. The other three firms are Oliver Wyman, Roland Berger and McKinsey & Company.
The four firms will now compete for a final mandate to work on the project, which is expected to be worth tens of millions of dollars.
Bain has extensive experience in advising on mergers and acquisitions (M&A). It advised Kraft Heinz on its $143 billion mega-merger with Unilever, as well as Nestle on its $11 billion deal for Gerber baby food.
The Boston-based consultancy also has a long history with UBS, having advised the bank on its 2000 acquisition of PaineWebber and more recently worked on cost-cutting initiatives.
Oliver Wyman
Oliver Wyman is a leading management consulting firm with a strong focus on the financial services industry. The firm has been involved in some of the most high-profile projects in the banking sector in recent years, including advising on the integration of Credit Suisse and UBS.
Oliver Wyman was one of four firms shortlisted by UBS to advise on its planned merger with Credit Suisse. The other firms are McKinsey & Company, Boston Consulting Group, and Bain & Company.
The selection of Oliver Wyman as a consultant on the planned merger is a clear indication that UBS is serious about making the deal happen. Oliver Wyman has a proven track record in advising on large-scale mergers and acquisitions in the financial services sector, and its involvement will no doubt help to smooth the transition for UBS as it looks to combine with Credit Suisse.
The timeline for the integration process
UBS has shortlisted four consultants to help with the integration of its business with Credit Suisse, according to a report in Swiss newspaper Tages-Anzeiger.
The four firms are Boston Consulting Group, McKinsey & Company, Oliver Wyman and Roland Berger. They will now compete for a contract to advise UBS on the integration process, which is expected to take place over the next two years.
UBS and Credit Suisse announced their plans to merge in October 2019, in a deal that will see UBS shareholders own around 65% of the combined entity. The merger is still subject to regulatory approval.
If it goes ahead, the new bank will be headquartered in Zurich and will have around CHF 2.8 trillion (USD 2.9 trillion) in assets under management.
Conclusion
UBS’s announcement to shortlist four consultants for the integration process with Credit Suisse is a strong signal of their commitment to this project. With the experience and expertise that these consultants bring, UBS can rest assured that they are taking all the necessary steps in order to ensure a smooth transition for both companies. This move will help UBS gain competitive advantage in terms of cost savings, improved customer satisfaction levels and greater brand recognition, which could help them become one of the leading financial services providers globally.
