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Bloomberg
The chairmen of UBS Group AG and Credit Suisse Group AG are exploring a potential merger to create one of Europe’s largest banks, Inside Paradeplatz reported.
The project, nicknamed Signal, is driven by UBS Chairman Axel Weber, who is working on it with his counterpart at Credit Suisse, Urs Rohner, the blog said. Weber has discussed the idea with Swiss Finance Minister Ueli Maurer and an agreement could happen by early next year, according to the report.
Europe’s banking industry is under pressure to consolidate as pandemic adds to headwinds from negative interest rates. Spain’s CaixaBank SA and Bankia SA are exploring a merger to form the largest lender in the country and kickstart consolidation in one of the hardest-hit European economies during the pandemic.
Weber would probably stay on as chairman of the combined company, making it likely that the CEO would come from Credit Suisse,
according to the report.
Banking regulator Finma has been informed of the deliberations, Inside Paradeplatz said.
A merger could result in job cuts equal to between 10% and 20% of the workforce, or 15,000 or more worldwide, according to the report.