UBS-CS Merger: Good News for Credit Suisse’s Asian Bankers
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UBS-CS Merger: Good News for Credit Suisse’s Asian Bankers

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UBS Group plans to retain select Asian investment bankers from Credit Suisse. Interestingly, UBS is expected to complete the takeover on June 12.

UBS Group (NYSE:UBS) is reportedly planning to retain over 100 investment bankers from Credit Suisse (NYSE:CS) in Asia, with the primary objective of capitalizing on Credit Suisse’s established presence and influence in the region.

UBS is currently engaged in talks with approximately twelve senior dealmakers from Credit Suisse across various countries, such as Korea, Thailand, Vietnam, and India. Additionally, UBS is putting forth compensation targets for a select group of managing directors.

Post-merger, it is anticipated that UBS will retain the CEOs of Credit Suisse in Korea and several other Southeast Asian markets. However, China may be an exception to this arrangement due to the significant business overlap between the two banks in the country. It is worth mentioning that UBS is currently deciding on the role of Janice Hu, CEO of Credit Suisse in China.

Following its merger announcement with Credit Suisse on March 19, UBS has been busy ensuring the smooth integration of both companies’ businesses. The Swiss bank had a difficult task at hand: streamline operations at CS and get rid of unprofitable operations and staff at the failed bank. It is noteworthy that UBS is expected to close the acquisition on June 12.

What is the Price Target for UBS?

Shares of UBS are up 9% since the deal announcement. The takeover is likely to boost UBS’ Global Wealth Management unit and strengthen its position in the Wealth Management segment by creating a business with total invested assets of over $5 trillion.

UBS cautioned that the merger would result in a substantial financial impact of approximately $17 billion. This includes adjustments to fair value and regulatory expenses.

UBS stock has received five Buy, three Hold, and three Sell recommendations for a Hold consensus rating. Analysts’ average price target of $25.16 implies 26% upside potential.

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