Two of Australia’s non-major lenders have announced they have entered into an agreement proposing a merger.
According to a joint media announcement by Auswide Bank and Your Credit Union (YCU), both lenders have entered into a merger implementation agreement under which they have agreed to proceed with the merger proposal by way of scheme of arrangement between YCU and its members.
Both companies said they have unanimously endorsed the proposed merger, “as it will bring together two highly compatible financial institutions”.
Should the merger be successful, Auswide and YCU said their members will enjoy higher levels of engagement and service, an extended branch network throughout Queensland, a wider range of financial products and services, an expanded technological and digital capability, and the financial strength and enhanced capability of a larger banking organisation.
Auswide managing director Martin Barrett said the move is not a big bank takeover, but a merger of two similar organisations to create an even more compelling banking proposition for the companies’ collective stakeholders.
“Auswide Bank customers will now have access to a conveniently located branch in the Brisbane CBD which will also assist our growth in South East Queensland,” he said.
“YCU members will have access to Auswide Bank’s broad range of banking capabilities and geographic footprint.”
YCU chairman Gordon Rutherford said the proposed merger is “a tremendous combination of two companies with much in common”.
“Auswide Bank is an outstanding, culturally-compatible merger partner, and the YCU directors are very pleased to recommend the merger proposal to YCU members,” he said.