UBS intends to keep the Credit Suisse brand for 4 years
Informed sources said that the Swiss bank UBS Group intends to maintain the brand name of the Credit Suisse Group, which it acquired, for the next three or four years.
The Swiss Finance & Wertschaft newspaper quoted the sources as saying that UBS doesn’t rule out keeping the Credit Suisse brand for more years.
Bloomberg reported that the continuation of the Credit Suisse brand as an independent brand within the UBS Group doesn’t depend on the completion of the merger.
UBS earlier this week agreed to buy struggling rival Credit Suisse for 3 billion francs ($3.24 billion).
This step came after the Swiss Federal Ministry of Finance, the Central Bank and the Swiss Financial Market Supervisory Authority asked the two banks to quickly complete the deal to restore the necessary confidence in the stability of the Swiss economy and banking system, according to a statement issued by Credit Suisse on Sunday evening.
According to the terms of the deal, each Credit Suisse shareholder will receive one UBS share for every 22.48 shares he owns in Credit Suisse, equivalent to 0.76 francs per Credit Suisse share, bringing the total value of the deal to about 3 billion francs.
The market value of Credit Suisse, as of the close of trading last week, was $8.55 billion.
The merger is expected to be completed by the end of this year, as UBS expects the deal to lead to a reduction in annual operating expenses of more than $8 billion by 2027.
UBS said it was confident that all Credit Suisse employees would continue in their jobs after the merger.