Bendigo bank has moved south in its search for a partner after its planned merger with Bank of Queensland was halted.
The merger between Bendigo Bank and Adelaide Bank, announced yesterday, will be implemented by a scheme of arrangement of Adelaide Bank.
If successful, the merged group will be named Bendigo and Adelaide Bank Limited. The change of name will not impact branding.
Bendigo Bank confirmed in late June that it had ceased merger arrangements with Bank of Queensland.
"The Bendigo Bank board carefully considered the Bank of Queensland proposal and considered that it was not in shareholders' best interests," a Bendigo Bank spokesperson said.
"Adelaide Bank has been Bendigo's preferred merger partner for some time.
"Adelaide brings to Bendigo a wholesale banking businesses that Bendigo would have been looking to develop or acquire anyway. The new merged business will therefore be more diverse and able to perform well in a variety of market conditions."
The merged group will have about $7 billion of funds under management and advice and loans under management of more than $43 billion.
The boards of both Bendigo Bank and Adelaide Bank will each be reduced by two directors when the companies are merged. This will result in a board of 12, including two executive directors.
The merger is subject to regulatory approvals and the opinion of an independent expert that it is in the best interests of Adelaide Bank shareholders.
It will have approximately 82,000 shareholders, predominantly retail and an expanded national footprint of more than 380 branches covering all states and territories.
The new group also plans to open a further 25 branches later this year or early next year.
Approval for the merger will be sought from Adelaide Bank shareholders at a meeting in November 2007.
