UBS Group AG is not looking to launch an IPO for Credit Suisse’s domestic unit, Swiss newspaper Schweiz am Wochenende reported on Saturday. According to the newspaper, UBS CEO Sergio Ermotti believes that taking this unit public could actually strengthen the bank’s international competitors.
Since UBS acquired Credit Suisse in an emergency government-backed deal in March, Swiss politicians have advised UBS to list Credit Suisse’s domestic branch on the Swiss stock exchange in an effort to preserve jobs and increase competition.
According to the newspaper, Ermotti may still be considering spinning off a combined UBS and Credit Suisse domestic bank, rebranded as UBS Switzerland. This is expected to only be done under the condition that UBS retains a majority stake in the new operation.
By doing so, UBS would be able to not only impose a double shareholding structure but also subdue fears over the newly-combined bank commanding an excessively large market share that endangered competition.
Ermotti previously revealed that UBS is considering all options and that the “base case scenario” is for the bank to retain Credit Suisse’s domestic unit.