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A regional bank and credit union are discussing a potential merger that would bulk up their combined asset size to more than $2 billion.
Regional Australia Bank and Holiday Coast Credit Union have announced that merger discussions are underway between the directors of the two lenders.
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Based on initial discussions, the chairmen of the bank and credit union, Graham Olrich and Allan Gordon, respectively, said that “it became very apparent” that the lenders are strategically aligned with “a commitment to ongoing mutual to underpin quality member service in banking”, adding that this is “essential” to any successful merger.
Should the merger go ahead, the combined entity will have an asset size of more than $2 billion.
The lenders said that they would focus on “delivering immediate tangible financial and non-financial benefits to its members” through “greater product diversification, simplified fee structures and competitive pricing”.
Under the current proposal, the merged entity would continue to operate under the Regional Australia Bank and Holiday Coast Credit Union brands in their respective locations.
The merger will commence once due diligence has been exercised and approvals have been obtained from the Australian Prudential Regulation Authority and the lenders’ stakeholders, with completion of the merger expected by 30 June 2019.
Other mergers and acquisitions this year include the merger of Kalgoorlie-based bank Goldfields Money and Sydney-based finance aggregator Finsure, the acquisition of marketplace lender Moneyplace by non-bank lender Liberty Financial, and the takeover of non-bank lender Capfin Money by personal loan provider Fair Go Finance.
[Related: Bank-aggregator merger gets thumbs up from shareholders]
