Merger of financial institutions passes due diligence
bcu's proposed merger with P&N Bank has cleared its first hurdle, with both organisations' boards voting to continue to the next stage after the successful completion of due diligence.
The positive result leaves the merger on-track for a vote of bcu members targeted for the fourth quarter of 2019, with members to be given the ultimate decision on whether the merger with the Western Australia-based customer-owned mutual will proceed.
bcu chairman Steve Targett said bcu's board had voted unanimously to proceed to the next stage after reviewing extensive due diligence reports prepared by bcu staff and external advisers.
"The due diligence reports confirmed there are no issues that would impact the merger and as such, we continue to believe P&N is an ideal merger partner for bcu," Mr Targett said.
"A merger with P&N means we will retain our brand, stores, staff and local leadership, but also benefit from the strength of being part of a larger group.
"We are confident that the merger presents a great opportunity to leverage the best of both organisations with an agreed focus on delivering improved products and services to members."
Mr Targett said both boards had agreed to proceed to the next stage, which would involve bcu obtaining an independent expert report on whether the merger is in the best interests of members, followed by a regulatory approval process, before members could vote.
Once regulatory approval is obtained, bcu will communicate and provide the member information booklet to members. After allowing members time to consider the information contained in the booklet, they would then have the opportunity to vote on whether to proceed with the merger.
"This means that the next few months will be a bit of a waiting period while the assessments and approvals go on behind the scenes," Mr Targett said.
"At this stage we hope to have the information booklet delivered to members in the third quarter of 2019, with the vote likely to occur in the fourth quarter, subject to regulatory timings.
"But for now, it is business as usual, and our friendly staff will continue to deliver the same level of service and commitment our members and communities have come to expect from bcu."
For more information, members can speak with their local store team, call bcu on 1300 228 228, email questions to email@example.com or click here.