The Bangko Sentral ng Pilipinas (BSP) has approved the merger between Bank of the Philippine Islands (BPI) and Robinsons Bank Corporation (RBC). BPI will emerge as the surviving entity following this merger.
This decision follows a series of approvals from various stakeholders and regulatory bodies. The stakeholders gave their nod in January 2023, and following that, the Philippine Competition Commission greenlit the merger in March 2023.
According to the regulatory filing, this merger is poised to enhance BPI’s market position by leveraging synergies between the two entities.
RBC, with its wide range of products and services and a network of 189 branches, including Legazpi Savings Bank, will contribute significantly to the combined entity.
The bank’s assets, amounting to PHP 175.9 billion as of June 2022, and its sizable liabilities, including deposits of PHP 139.0 billion, are expected to bolster BPI’s financial footing.
The merger will allow BPI to broaden its client base and accelerate growth, particularly through its partnerships with the Gokongwei Group.
Post-merger, RBC shareholders are set to hold about 6% of BPI’s outstanding capital stock. Approximately 314 million common shares of BPI will be issued to RBC shareholders in line with this merger.
The merger is slated to take effect on 1 January 2024, subject to final approval by the Securities and Exchange Commission (SEC).
Featured image credit: Edited from Unsplash
