Union of credit
Mecu is plans to merge with RegionalOne Credit Union will create an entity with over $2 billion in assets.
Victoria's biggest credit union Mecu has announced that it will pursue a merger with RegionalOne Credit Union, based in Bendigo.
The combined entity will have assets over $2 billion, $220 million in capital, 300 staff and will serve over 100,000 members, with half living in regional Victoria, Mecu said in a release.
RegionalOne members will vote on the merger at a special general meeting to be organised before the end of June.
The merger is expected to create operational synergies. "Several thousand Mecu members currently reside within very close proximity to RegionalOne branches," Mecu chief Phylip Doughty said in the release, adding that members close to branches could be expected to increase their level of business with the credit union.
"I am confident that both RegionalOne and Mecu members will recognise this proposal to be an exceptional opportunity," Doughty said.
Perhaps indicative of the credit union culture, no expensive investment bankers are involved in the transaction.
Doughty told Business Spectator that the merger was being led internally by the parties, and that the team at Mecu, which merged with Queensland's Uni Credit Union in August last year, had plenty of in-house experience. Mecu otherwise received legal advice from Mahonys Solicitors in Melbourne.
Doughty said that the merger of the companies, both public but unlisted, was being conducted under ASIC's transfer of business provisions and was subject to approval from APRA, and in turn the ACCC, ASIC and the ATO.
The proposed merger underscores general consolidation in the banking and consumer finance sector. In November 2007, Bendigo Bank implemented a scheme of arrangement with Adelaide Bank to create Bendigo and Adelaide Bank. In March of that year Suncorp-Metway merged with rival insurer Promina Group.
But today the show is not over at Suncorp, which has seen its chief executive John Mulcahy announce his immediate departure, partially due to Suncorp's expensive bid for Promina and for the botched sale of Metway, which at one stage had CBA, ANZ and NAB as bidders.
Mergers and acquisitions are not always so easy to facilitate.
The combined entity will have assets over $2 billion, $220 million in capital, 300 staff and will serve over 100,000 members, with half living in regional Victoria, Mecu said in a release.
RegionalOne members will vote on the merger at a special general meeting to be organised before the end of June.
The merger is expected to create operational synergies. "Several thousand Mecu members currently reside within very close proximity to RegionalOne branches," Mecu chief Phylip Doughty said in the release, adding that members close to branches could be expected to increase their level of business with the credit union.
"I am confident that both RegionalOne and Mecu members will recognise this proposal to be an exceptional opportunity," Doughty said.
Perhaps indicative of the credit union culture, no expensive investment bankers are involved in the transaction.
Doughty told Business Spectator that the merger was being led internally by the parties, and that the team at Mecu, which merged with Queensland's Uni Credit Union in August last year, had plenty of in-house experience. Mecu otherwise received legal advice from Mahonys Solicitors in Melbourne.
Doughty said that the merger of the companies, both public but unlisted, was being conducted under ASIC's transfer of business provisions and was subject to approval from APRA, and in turn the ACCC, ASIC and the ATO.
The proposed merger underscores general consolidation in the banking and consumer finance sector. In November 2007, Bendigo Bank implemented a scheme of arrangement with Adelaide Bank to create Bendigo and Adelaide Bank. In March of that year Suncorp-Metway merged with rival insurer Promina Group.
But today the show is not over at Suncorp, which has seen its chief executive John Mulcahy announce his immediate departure, partially due to Suncorp's expensive bid for Promina and for the botched sale of Metway, which at one stage had CBA, ANZ and NAB as bidders.
Mergers and acquisitions are not always so easy to facilitate.
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