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It would be the most important deal since 1997, when Zurich UBS merged with Basler Bankverein under the leadership of Marcel Ospel.
Now it is the German Axel Weber who wants to catapult UBS into the next sphere. Weber, the No. 1 chairman of the board, is planning a merger with Credit Suisse’s Urs Rohner.
The project is called Signal, as reported from inside the two big banks. Axel Weber is the driving force, says an insider, he spoke to Finance Minister Ueli Maurer about it.
Banking regulator Finma is also involved in Weber’s plans. This would boost the pace. The merger should be agreed in early 2021, and by the end of 2021, Switzerland would have a new financial giant.
A second source reports from McKinsey, who assures that one is involved in something that “would overshadow everything that has existed in the financial center.” McKinsey has been a consultant for both multinationals for years.
A merged UBS-CS would become the leading banking giant in continental Europe. The group could compete with the Anglo-Asian HSBC and American houses.
That is Weber’s goal. He would remain chairman of the new Swiss Superbank beyond 2022. So far it has been assumed that Weber will resign in two years.
A Weber spokesman said yesterday on request that “rumors are generally not discussed.” The CS did not respond to an email.
The price for the employees would be gigantic. CS employs almost 50,000 people, including some 15,000 in Switzerland, UBS almost 70,000 worldwide, and around 20,000 in Switzerland.
After a merger, a reduction of 10 to 20 percent is expected, that is, about 15,000 or more worldwide.
In Switzerland, of the total of 35,000 jobs, at least 5,000 would disappear in the first phase, after which there could be significantly more.
The winners would be the shareholders. Investors could expect a rise in prices. Both CS and UBS disappointed in the stock market. Its CEOs failed to make the stock attractive.
Axel Weber is going ahead with his merger plans, says the insider. The president of UBS wants to erect a monument.
Weber would speak to many about his plan. That is why the desired merger of the Swiss financial giants has been circulating for weeks.
Since Weber sees himself as the chairman of the board of a merged Swiss bank, the CEO of the new Gigabank would come from CS.
As a Swiss, Thomas Gottstein would have a good chance of landing a top operating position.
For CS president Urs Rohner, a merger would be a way out of his succession problem. So far it is not clear who could inherit the lawyer this spring.
