UBS Group AG's top dealmakers in Asia are set on maintaining the bank's top-three ranking in mergers and acquisitions after absorbing talent from Credit Suisse, according to people familiar with the matter. The Swiss lender has bolstered its regional advisory team by integrating Credit Suisse bankers following the emergency takeover in 2023, aiming to leverage increased market share in a fiercely competitive environment.
Strategic Integration and Market Position
UBS's Asia Pacific M&A revenue reached approximately $1.2 billion in 2023, representing a 15% increase year-on-year, partly driven by the addition of Credit Suisse's dealmakers. The bank now holds a 7.5% market share in the region, up from 6.2% previously, according to data from Dealogic. David Chin, co-head of Asia Pacific M&A at UBS, stated: "We have a strong pipeline and are confident in retaining our top-three position given the depth of our team and client relationships."
Competitive Landscape and Challenges
The Asian M&A market remains dominated by Goldman Sachs and Morgan Stanley, but UBS's expanded team allows it to compete more effectively for cross-border deals, particularly in China and Southeast Asia. However, retaining top talent from Credit Suisse is crucial, as rival banks have been poaching senior bankers. UBS has offered retention bonuses and leadership roles to key Credit Suisse dealmakers to ensure stability.
Outlook and Deal Pipeline
UBS expects a busy 2024 with several large transactions in the healthcare, technology, and energy sectors. The bank is advising on at least three deals valued over $1 billion each in Asia. "The integration has gone smoothly, and we are seeing strong collaboration between legacy UBS and Credit Suisse teams," said John Lee, another co-head of Asia Pacific M&A. The bank aims to close the gap with the top two players by leveraging its combined balance sheet and advisory expertise.
