| |
| |
![]() |
| |
|
| |
|
| |
|
SYDNEY - Australia's fourth-largest bank, Westpac, said Monday it was in merger discussions with fifth-ranked St. George which could lead to the creation of the country's biggest bank.
Westpac Bank Corp Ltd. said it wants to make an all-scrip bid for St. George Bank Ltd to form Australia's leading financial services company.
St. George said Westpac approached it after the close of business on Friday with the merger proposal, and the two banks have requested that trading in their shares be suspended while discussions continue.
Westpac chief executive Gail Kelly said the merger would create a combined group able to compete more effectively in the Australian market.
"It would create Australia's leading financial institution with regard to meeting customer needs, distribution, strong brands, scale, financial strength and the best products," Kelly said in a statement.
Kelly, the former chief executive of St. George, became chief executive at Westpac at the start of February.
The combined group would have about 10 million customers and would displace National Australia Bank Ltd. as Australia's largest banking group.
It would have a 25 percent share of Australia's home loan market and become the nation's largest wealth management group with 108 billion dollars (US$102 billion) of funds under administration.
"The proposal continues Westpac's focus on Australia and New Zealand and would help Westpac achieve its strategic priorities sooner -- building greater strength in distribution and transforming our operations through the integration process," Kelly said.
Westpac shares closed on Friday at 25.97 dollars, putting the bank's capital at 48.8 billion while St. George closed at 26.65 dollars, giving it a market capitalisation of 15 billion. - AFP/vm
|
