MANILA, Philippines – The impending merger between the Bank of the Philippine Islands (BPI) and Robinsons Bank Corporation is now one step closer to being executed after being approved by the Bangko Sentral ng Pilipinas (BSP).

The BSP’s Monetary Board approved the merger between the two banks on Thursday, December 14, according to both BPI and JG Summit, the holdings company of Robinsons Bank. Under the merger, BPI will be the surviving bank.

With the BSP’s approval, the two parties are now awaiting clearance from the Securities and Exchange Commission before executing the merger. BPI president and chief executive officer Jose Teodoro “TG” Limcaoco previously said the target date for the merger’s completion was early 2024.

The merger plan was also approved by the Philippine Competition Commission last September, with the PCC finding that it would “not likely result in substantial lessening of competition.” 

Post-merger, BPI will merely retain its current rank as the third largest bank in the country in terms of total assets and deposits.

The Gokongwei Group, owner of Robinsons Bank, will receive an additional 6.0001% common shares of BPI following the merger, according to a supplement to the merger plan dated October 20.

BPI believes the merger would “unlock synergies” across the two banks and the Gokongwei Group’s vast business interests in food manufacturing, air transportation, real estate, property development, and retail.

“The merger will also expand BPI’s access to the network of the Gokongwei Group, especially to the Filipino-Chinese market segment, which has been the significant advantage of our closest competitors,” Limcaoco said in January.

The merger will also allow BPI to engage in digital banking through Robinsons Bank’s 20% ownership interest in GoTyme. BPI itself does not have a digital bank license. (READ: ​​As digital banks gain popularity, will the big banks follow too?) – Rappler.com