M&A Example: UBS Memo on Taking Over Credit Suisse (Insider Comms)

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On March 19, UBS announced they were buying what’s left of a collapsing Credit Suisse to stave off a potential financial crisis in Switzerland and Europe. The two banks, whose headquarters are literally across the street from each other in Zurich, have become one, leaving Switzerland with one Big Bank.

• For those who aren’t following the saga, UBS taking over Credit Suisse is kind of like HSBC swallowing Barclays, leaving the U.K. with just one Big Bank.

On the day of the announcement, UBS CEO Ralph Hamers sent a memo to UBS staff (below) with an outline of the takeover.

• In a sign of how frothy the situation remains, yesterday, 10 days later, UBS announced that Hamers is out as CEO, and UBS’s previous chief, Sergio Ermotti, has regained the captain’s seat to steer the combined banking giant through this next phase.

Hamers’ memo is a good example of high stakes M&A, when two giants or rivals combine. Though the UBS takeover happened in a flash, the structure and tone of this note can be used for slow-rolling mergers, such as the upcoming (possible) merger of U.S. grocery giants Kroger and Albertsons.

The memo starts by describing what the historic merger means for UBS. The second item explains what this means for employees.

• Note to CEOs: Employees care about that second item more than anything else, so maybe put that first?

While I appreciate the many subheads that divide the memo into several “what this means” sections, the specifics are lacking. Indeed, some points are repeated in the letter, and the section about “what it means for our clients” reads like it was written by ChatGPT.

Compare the UBS M&A memo to another fast-moving deal, that of Vox Media acquiring upstart Group Nine Media.

• In this case, news of the acquisition leaked, which meant employees of both companies were hearing about it first in the news. Vox scrambled to send a note to employees and did a good job of staying on top of a fast-moving story.

• The Vox Media memo has many more specifics than the UBS note. Granted, Vox Media had more time to prepare their notes.

• Read the CEO’s memo to Vox Media employees on the news of a leaked acquisition: Reaction to a Leak About an Acquisition: Vox Media Memo (Insider Comms) (Mister Editorial, 🔒)

Here’s the UBS memo.