Financial planning groups Tranzact Financial Services and Grosvenor Financial Services have announced they are in merger talks but won't be combining businesses before the middle of 2009.
Combining into one entity will boost growth prospects and create more shareholder value, Tranzact said in a statement to the Australian Securities Exchange (ASX).
"Tranzact now confirms that the boards of both companies have met formally and agreed to continue their discussions towards the goal of achieving a merger, on terms to be agreed mutually at an appropriate time in the future," the statement said.
However, both companies won't be merging before June 30, 2009 as they have both been busy implementing strategies that will boost individual shareholder value in the next few months.
"The boards believe the shareholders of the respective companies would wish to see the benefits of these initiatives fully reflected in each company's valuation," the statement said.
Tranzact's shares were unchanged at 18.5 cents in trading yesterday.
