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WESTPAC Banking Corporation is in merger discussions with St George Bank to create Australia's largest financial services company, the bank said today after its shares were placed in a trading halt. Both banks this morning asked for trading halts in their shares to allow confidential discussions to continue and for an announcement to be made, possibly within 24 hours. Westpac made an approach to St George Bank on Friday after the close of business. “This would lower risk and costs for St.George, and position the combined business to withstand challenging funding markets and take advantage of opportunities created by the dislocation in capital markets,” Westpac (wbc.ASX  uote,News) said.The merger would require the approval of a range of regulatory authorities as well as the Federal Treasurer. Westpac has engaged Caliburn Partnership as financial adviser and Gilbert +Tobin as legal adviser. Westpac chief executive Gail Kelly, the former boss of St George (sgb.ASX uote,News), said the merger would meet customer's needs and make banking easier.“For customers it would make it more convenient to access customer touchpoints, including the largest distribution network with over 1200 branches and in-stores as well as more than 2700 ATMs. “It would also provide greater diversity and choice of products from both organisations. This would ensure that the best of each bank’s product and service capabilities can be extended across customer segments, driving significant revenue growth.” |
