Possible Merger Between BPI and RBC

The Ayala-owned Bank of the Philippine Islands (BPI) and the Robinsons Bank Corp. (RBC) of Gokongwei Group are reported to have a possible merger to create the Philippines’ second largest assets lender.

An industry source has disclosed that with a share swap agreement, the Gokongweis would most likely have a 6% stake in the bank led by the Ayala group.

The Gokongwei’s board of directors is predicted the approve the agreement between BPI and Robinsons Retail Holdings Inc., JG Summit Capital Services Corp.

BPI has confirmed that it was discussing with Robinsons Bank a potential collaboration.

“Please be informed that we are in discussions on a potential collaboration between BPI and Robinsons Bank. Further disclosures will be made at the appropriate time,”  stated BPI.

With the planned collaboration, BPI is set to come out as the surviving entity. RBC has around 354 ATMs and 150 branches while BPI has more than 2,500 ATMs and 900 branches.

However, this possible merger is still subject to the approval of its shareholders and regulators such as the Philippine Competition Commission (PCC), Philippine Deposit Insurance Corp. (PDIC), Securities and Exchange Commission (SEC), and the Bangko Sentral ng Pilipinas (BSP).

Data from the central bank shows BPI as the third largest private bank in the Philippines in terms of assets worth ₱297.37 trillion and the second largest with capital worth ₱297.37 billion by March.

Meanwhile, RBC is 17th in terms of assets worth ₱175.9 billion and 15th in terms of capital worth ₱16.74 billion.

Source: Philstar