SUMMARY
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MANILA, Philippines – The Lucio Tan group has finally secured the regulatory approval of the Bangko Sentral ng Pilipinas (BSP) for the long-delayed merger between Philippine National Bank (PNB) and Allied Banking Corp.
In a disclosure Wednesday, August 15, listed Allied Bank said PNB will be the surviving entity, as approved by the BSP on August 14.
The merger will create the country’s 4th largest privately owned bank. Earlier, PNB said the transaction will be undertaken via a share-for-share swap deal.
The BSP’s nod is part of the series of 3 regulatory approvals the banks need to effect the merger. On July 26, the Philippine Deposit Insurance Corp. (PDIC) granted its consent. The endorsement of the Securities and Exchange Commission (SEC) is still pending.
The clearance from the PDIC and the BSP came after a legal roadblock to the deal was cleared.
The government, through the Presidential Commission on Good Government, tried to block the merger as it sought to recover Lucio Tan’s alleged ill-gotten wealth that includes shares in Allied Bank.
In June, however, the Sandiganbayan dismissed the almost 25-year case against the tycoon, who also owned disputed stakes in Fortune Tobacco Corp and Asia Brewery Inc, among others.
The PNB-Alled Bank merger is expected to result in lower operating costs for the combined operations.
The surviving entity will have a network of 646 branches nationwide and total assets of P514 billion, the 4th largest among privately owned banks and the 5th largest among all local banks. – Rappler.com
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