Momentum for a tie-up between Switzerland’s two largest banks has reportedly slowed since the summer holidays, boosting the possibilities for other merger targets.
Since the summer break, progress towards a possible UBS-Credit Suisse merger has stagnated, according to a report from Zurich-based «Bilanz» (German language only), citing an unnamed source.
After holding discussions in the first half of 2020, talks have slowed concurrently with a drop in Credit Suisse’s share price which prevents the two Swiss banks from executing a preferred merger of equals.
Serious Considerations
The merger has reportedly received backing from both UBS chairman Axel Weber and Credit Suisse chairman Urs Rohner, who is due for retirement in 2021. According to «Bilanz», this consideration has been more serious than ever previously known, despite the recent stagnation of talks.
Separately, a «Reuters» report last week noted that UBS had gathered to discuss strategy but a merger with Credit Suisse was not on the official agenda. And over the weekend, Weber reportedly drew up a merger wish list that also included BNP Paribas and his preferred choice, Deutsche Bank.
