MANILA, Philippines — The merger between Ayala-led Bank of the Philippine Islands (BPI) and Gokongwei-owned Robinsons Bank Corp. moved a step closer to fruition after receiving the approval of the Philippine Competition Commission (PCC).
In separate disclosures to the Philippine Stock Exchange (PSE), BPI and the majority shareholders of Robinsons Bank announced that they have obtained the approval of the PCC for the planned merger.
JG Summit Capital Holdings Corp. controls 59.99 percent of Robinsons Bank while Robinsons Retail Holdings Inc. (RRHI) owns 39.99 percent. The subsidiaries and affiliates of Robinsons Bank include Legazpi Savings Bank., GoTyme Bank Corp. and Unicon Insurance Brokers Corp.
The approval came after BPI president and CEO Jose Teodoro “TG” Limcaoco” and Robinsons Bank president and CEO Elfren Antonio Sarte signed the Revised Plan of Merger on Sept. 5 to take into consideration the comments of the Bangko Sentral ng Pilipinas (BSP) on the planned consolidation of the two banks.
BPI said the planned merger with Robinsons Bank is still awaiting the approvals from the BSP and the Securities and Exchange Commission.
The 172-year-old bank was earlier looking at October at the earliest for the completion of the merger, or in early January next year.
“The timetable for implementation of the merger cannot be fixed at this time as the same is subject to regulatory approvals,” BPI said.
The board of directors of BPI, JG Capital and RRHI approved the original plan of merger on Sept. 30, 2022.
Last January, the Gokongwei Group through RRHI shelled out almost P20 billion to acquire the 4.4-percent equity interest of Arran Investment Pte Ltd., an affiliate of Singapore’s GIC Private Ltd., in BPI.
Upon the effectivity of the proposed merger after receipt of all necessary corporate and regulatory approvals, the shareholders of Robinsons Bank will collectively hold approximately six percent of the resulting outstanding capital stock of BPI.
Through the consolidation, BPI will be able to unlock various synergies across several products and service platforms, expand the customer and deposit base of both banks through the merged entity, and at the same time, by capitalizing on BPI’s expertise and network, enhance the overall banking experience of Robinsons Bank customers.
It will also be able to expand its client base, accelerate growth, and ultimately increase shareholder value through partnerships with the Gokongwei Group.
BPI’s capital base stood at P2.66 trillion while that of Robinsons Bank amounted to P172.95 billion as of end-March this year. In terms of capitalization, BPI had P329.84 billion while Robinsons Bank had P20.05 billion.