Australian regional banking groups Auswide Bank and MyState Bank have concluded the A$755m ($480.4m) merger with Auswide becoming an indirect wholly owned subsidiary of MyState.
MyState and Auswide are based in Tasmania and Queensland, respectively.
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Under the agreement, MyState Bank, a wholly owned subsidiary of MyState Limited, has acquired full ownership of Auswide Bank’s fully paid ordinary shares.
Shareholders of Auswide Bank received 1.112 new MyState shares for each share held.
Trading in Auswide Bank shares on the Australian Securities Exchange (ASX) has been suspended.
MyState Managing Director & CEO Brett Morgan said: “We will be in a great position to invest and to provide Australians with a real alternative for their banking, asset finance and wealth needs.
“The merger will significantly enhance the scale of the group and increase funding flexibility. The new board and executive team are in place on day one to drive business growth and lead integration initiatives.”
The newly merged entity will operate under four brands – MyState Bank, Auswide Bank, SelfCo, and TPT Wealth.
It will provide banking services through a combination of branch networks, digital platforms, and broker partnerships across Australia’s eastern seaboard.
The combined group will have a home lending portfolio of A$12.7bn and customer deposits totalling A$9.9bn.
It will serve approximately 272,000 customers through 23 branches, digital banking services, broker networks, and two contact centres based in Australia.
The merger will not have any immediate operational changes for customers, while the combined business plans “some changes” in the future, including enhanced digital tools, expanded contact centres, and a broader range of products and services.
In a blog post, Auswide said: “The merger of two successful regional banks brings together complementary strengths and resources, providing the opportunity for future growth and enhanced customer experiences.
“Both banks have been putting customers first for a combined history of over 122 years, and together by combining our expertise and resources we can do even more to meet the financial and banking needs of our customers, including access to a wider range of competitive products and new technology.”
