UBS AG hired strategy consultant Oliver Wyman for advice on the takeover of Credit Suisse Group AG as it braces for job cuts and winding down unwanted businesses.
(Bloomberg) — UBS AG hired strategy consultant Oliver Wyman for advice on the takeover of Credit Suisse Group AG as it braces for job cuts and winding down unwanted businesses.
The project will run for several years and likely result in steady and very substantial fee income for the firm, according to people with knowledge of the matter. Firms that had also pitched included Bain, Boston Consulting Group and McKinsey, the people said, asking not to be named discussing private information.
Representatives for UBS, Oliver Wyman and BCG declined to comment. Bain and McKinsey didn’t respond to requests for comment.
UBS agreed to buy Credit Suisse last month in an emergency rescue engineered by the Swiss government after the smaller bank suffered massive deposit outflows during a crisis of confidence. UBS Chairman Colm Kelleher said last week that it will likely take months to close the deal and as much as four years to complete the integration.
The Swiss bank is seeking more than $8 billion in cost cuts from the merger over the next years, likely putting tens of thousands of jobs at risk. The deal also entails exiting large parts of Credit Suisse’s investment bank and integrating other businesses, tying up managerial and staff resources for the forseeable future.
“This is the biggest single financial transaction” since the global crisis about 15 years ago, Kelleher said last month of the takeover. “I would argue it’s bigger than any deal that was done in 2008” as it’s the first time two systemically relevant banks merge, he said.
UBS also reappointed Sergio Ermotti as chief executive officer, saying he is better suited to oversee the integration than his predecessor, Ralph Hamers. Ermotti previously ran UBS as CEO from 2011 to 2020.
During his time as CEO, Ermotti hired Huw van Steenis as a senior advisor in 2019. Steenis left UBS about a year ago and then joined Oliver Wyman in November and is Vice Chair.
–With assistance from Myriam Balezou.
(Adds firms that also pitched for role in second paragraph)
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