UBS appoints Sergio Ermotti as Group CEO following Credit Suisse acquisition
UBS has appointed Sergio P. Ermotti as Group Chief Executive Officer following its agreement to acquire Credit Suisse.
Harold Cunningham | Getty Images News | Getty Images
UBS on Wednesday appointed Sergio Ermotti as group CEO, following the recent acquisition of Credit Suisse.
The move will be effective April 5, UBS said in a statement.
investment related news
Ermotti will replace current CEO Ralph Hamers, who is expected to remain at UBS to advise the bank during the transition period to “ensure a successful closing of the transaction and a smooth handover,” the company said.
On March 19, Switzerland’s biggest bank UBS agreed to buy embattled rival Credit Suisse for 3 billion Swiss francs ($3.2 billion). Swiss regulators played a key role in the deal as governments sought to stem a contagion threatening the global banking system.
Ermotti was CEO of UBS Group for nine years, from November 2011 to October 2020, and is currently chairman of insurance company Swiss Re.
The management change comes “in light of the new challenges and priorities facing UBS following the acquisition announcement,” UBS said in the statement.
Hamers reportedly told employees of the government-orchestrated takeover that UBS “didn’t buy Credit Suisse just to shut it down,” Reuters reported.
In the announcement, UBS Chairman Colm Kelleher called Hamers an “outstanding” CEO who has led UBS to “unprecedented success despite a challenging environment.”
While the Credit Suisse acquisition supports UBS’s existing strategy, it imposes new priorities on the group, he said.
“Thanks to his unique experience, I am confident that Sergio will achieve the integration that is so essential for banking customers, employees and investors, as well as for Switzerland,” Kelleher said.
This is breaking news. Please check for updates.