Heritage Bank merger
Discussions now under way for $22 billion deal
TWO of Australia’s largest customer-owned banking organisations, Toowoomba-based Heritage Bank and People’s Choice Credit Union have announced they’re exploring a $22 billion merger.
The potential merger has been seven months in the making and would see the new entity become one of the country’s largest banking organisations with about 700,000 members, more than 90 branches and close to 1700 employees.
Heritage chairman Kerry Betros said while the discussions were in the early stages, no branch closures or nonexecutive redundancies would come from the proposal.
“Our members’ interests will be the most important consideration in any decision to merge and they will have the final say in any potential merger,” Mr Betros said.
If the merger proceeded, Heritage CEO Peter Lock said both organisations would have equal board representation and head offices would be retained in both Toowoomba and Adelaide, promising there would be no job cuts.
“While we are both successful organisations, joining forces would provide us with the scale, profile and nationwide presence to redefine mutual banking for current and future members,” Mr Lock said.
“Together, the merged entity would enable us to significantly enhance our ability to invest in a broader range of products and services as well as providing access to digital capabilities that will benefit our members.”
People’s Choice chairman, Michael Cameron, said Heritage and People’s Choice have been in discussions for several months.
“We recognise that we are both strong businesses, with approximately the same number of members, employees and assets so if a merger proceeds it would be a true merger of equals,” he said.
A due diligence process is now underway to assess the member benefits and if both organisations decide to proceed, the proposal will go to a member vote which would occur in early 2022.
Members of both organisations do not need to do anything at this stage. Should the merger proceed to a vote, further information will be provided to them to enable an informed decision with respect to the proposed merger.