UBS shortlists 4 consultants for Credit Suisse integration

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UBS has whittled down its shortlist to 4 administration consultants to advise on its integration of rival Credit score Suisse, in what is expected to be just one of the most profitable financial solutions advisory contracts in modern years.

Swiss financial institution UBS is established to come to a decision irrespective of whether to award the deal to Bain & Organization, Boston Consulting Group, McKinsey or Oliver Wyman in the coming days, in accordance to men and women involved in the system. Lesser contracts could be awarded at later dates for far more specialist function, mentioned the similar folks who warned UBS could determine to reopen the approach.

UBS executives invited bids from management consultants in the days next its arrangement to rescue Credit rating Suisse in a historic $3.25bn deal that was orchestrated by Swiss authorities.

The undertaking of bringing jointly for the first time two world systemically essential money establishments is predicted to consider many a long time and be fiendishly intricate.

The mixed group will have 120,000 staff globally, but tens of countless numbers of job cuts are envisioned.

This 7 days, UBS chair Colm Kelleher changed chief govt Ralph Hamers with his predecessor Sergio Ermotti in recognition of the scale of the challenge of making the transaction a achievements.

“This is the greatest single economic transaction given that 2008,” Kelleher informed reporters. “That brings with it sizeable execution hazard.”

Ermotti, who officially starts on Wednesday, is predicted to have a say on which marketing consultant is selected, even though the integration approach is becoming led by chief data and digital officer Mike Dargan.

Boasting the contract will be a boon for the profitable bidder, at a time when banking companies are commonly chopping again on their shelling out on outdoors consultants.

Very last yr, UBS targeted minimizing its shelling out on exterior advisers as portion of a pre-takeover drive to lower $1bn of prices by the finish of this calendar year.

In the latest many years, UBS has used McKinsey to assist Hamers create his approach for the bank, which was unveiled final calendar year, and to put into practice an agile doing work tactic, which is aimed at speeding up selection-earning. Some senior bankers have expressed concern about UBS producing an more than-reliance on the company.

Equally, the lender utilized consultants from Oliver Wyman to advise on its hazard management functions and BCG for some lesser tasks, according to men and women familiar with interior workings.

Credit score Suisse had also been making an attempt to lessen its use of exterior advisers, which incorporated a system to halve paying on consultants very last yr. It reduced its external expert headcount by a fifth in the final quarter of 2022. It relied on assistance from McKinsey for its two the latest restructuring plans — one particular under previous chair António Horta-Osório and the other from last calendar year that aimed at radically reforming the enterprise.

As section of the accompanying charge-chopping designs, Credit Suisse sought advice from Oliver Wyman and BCG, when Deloitte delivered enter on the bank’s pay back policy, according to people today with information of their involvement.

UBS, Bain, BCG, McKinsey and Oliver Wyman declined to remark.

Extra reporting by Michael O’Dwyer

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