Westpac Bank and St George Bank have revealed this morning that they are in merger talks.
The combined entity would create the largest financial services company in Australia, surpassing the market value of the Commonwealth Bank of Australia.
"It would create Australia's leading financial institution with regard to meeting customer needs, distribution, strong bands, scale, financial strength and the best products," Westpac chief executive Gail Kelly said in a statement to the Australian Securities Exchange.
The combination will be all-scrip, she said in the statement, without going into specific detail.
"It would also provide greater diversity and choice of products from both organisations.
"This would ensure that best of each bank's product and service capabilities can be extended across customer segments, driving significant revenue growth."
The statement confirmed that Westpac's BT wealth management arm, and St George's Asgard and Securitor divisions would be combined to administer $108 billion of funds.
