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UBS shortlists four consultants for Credit Suisse integration

UBS has whittled down its shortlist to 4 administration consultants to advise on its integration of rival Credit score Suisse, in what is anticipated to be some of the profitable monetary companies advisory contracts lately.

Swiss financial institution UBS is about to resolve whether or not to award the contract to Bain & Firm, Boston Consulting Group, McKinsey or Oliver Wyman within the coming days, in accordance with individuals concerned within the course of. Smaller contracts may very well be awarded at later dates for extra specialist work, stated the identical individuals who warned UBS may resolve to reopen the method.

UBS executives invited bids from administration consultants within the days following its settlement to rescue Credit score Suisse in a historic $3.25bn deal that was orchestrated by Swiss authorities.

The duty of bringing collectively for the primary time two international systemically necessary monetary establishments is anticipated to take a number of years and be fiendishly difficult.

The mixed group may have 120,000 employees globally, however tens of 1000’s of job cuts are anticipated.

This week, UBS chair Colm Kelleher changed chief govt Ralph Hamers along with his predecessor Sergio Ermotti in recognition of the dimensions of the problem of creating the transaction a hit.

“That is the most important single monetary transaction since 2008,” Kelleher advised reporters. “That brings with it vital execution danger.”

Ermotti, who formally begins on Wednesday, is anticipated to have a say on which advisor is chosen, although the mixing course of is being led by chief data and digital officer Mike Dargan.

Claiming the contract will probably be a boon for the successful bidder, at a time when banks are typically chopping again on their spending on outdoors consultants.

Final yr, UBS focused decreasing its spending on exterior advisers as a part of a pre-takeover drive to chop $1bn of prices by the tip of this yr.

Lately, UBS has employed McKinsey to assist Hamers develop his technique for the financial institution, which was unveiled final yr, and to implement an agile working technique, which is geared toward dashing up decision-making. Some senior bankers have expressed concern about UBS growing an over-reliance on the agency.

Equally, the financial institution used consultants from Oliver Wyman to advise on its danger administration operations and BCG for some smaller initiatives, in accordance with individuals aware of inside workings.

Credit score Suisse had additionally been trying to cut back its use of exterior advisers, which included a plan to halve spending on consultants final yr. It lowered its exterior advisor headcount by a fifth within the closing quarter of 2022. It relied on recommendation from McKinsey for its two latest restructuring plans — one underneath former chair António Horta-Osório and the opposite from final yr that geared toward radically reforming the enterprise.

As a part of the accompanying cost-cutting plans, Credit score Suisse sought recommendation from Oliver Wyman and BCG, whereas Deloitte supplied enter on the financial institution’s pay coverage, in accordance with individuals with data of their involvement.

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

Further reporting by Michael O’Dwyer