Sergio Ermotti was named as the new Group CEO of the company on Wednesday following recent developments.
Acquisition of Credit Suisse
UBS announced in a press release that the move would take effect on April 5.
Ermotti replaces current CEO Ralph Hamers. Hamers will remain at UBS during the transition and "ensure that the transaction is successfully closed and the handover goes smoothly," according to the company.
UBS, Switzerland's biggest bank, agreed on March 19 to purchase its struggling rival Credit Suisse for $3.25 billion Swiss Francs. Swiss regulators were key in this deal, as governments sought to stop a global banking crisis.
Ermotti is the chairman of Swiss Re, an insurance company. He was previously group CEO at UBS from November 2011 until October 2020.
UBS stated in its announcement that the leadership change was made "in light the new challenges and priority facing UBS following the announcement of this acquisition."
Hamers reportedly told employees of the government-orchestrated takeover that UBS "did not buy Credit Suisse only to close it," Reuters reported.
Hamers was described as an "outstanding CEO" by UBS Chairman Colm Kelleher in the announcement. Hamers led UBS to unprecedented success despite a difficult environment.
He said that while the Credit Suisse acquisition supports UBS’ existing strategy, it imposes a new set of priorities to the group.
Sergio's unique experience makes me confident that he will achieve the successful integration required for bank clients, employees, investors and Switzerland. Kelleher stated that.
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