MANILA (Thomson Financial) – Rizal Commercial Banking Corp (RCBC), the Philippines’ eighth-largest bank by assets, said
Wednesday it is acquiring a smaller bank, Merchants Savings and Loan Association Inc, for 520 million pesos.
RCBC said it will buy Merchants Savings from shareholders that include Finman Capital Corporation.
The acquisition of Merchants Savings is part of RCBC’s strategy to increase its branch network, especially in the capital Manila, RCBC president and CEO Lorenzo Tan said in a statement.
‘This is a welcome development for all of us in RCBC as our vision for the bank includes growing it both organically and through mergers and acquisitions,’ said Tan.
RCBC said previously it plans to grow its network this year by acquiring small and medium-sized banks.
Tan said RCBC’s board of directors has approved the acquisition but will still be subject to
approval by the Philippine central bank.
Tan said consolidating Merchants Savings’ branches with RCBC and RCBC Savings Bank will increase RCBC’s branch network to 317.
Currently, RCBC has 296 branches nationwide, including 110 outlets of unit RCBC Savings Bank.
At 11.29 am (0329 GMT), RCBC shares were flat at 28 pesos.
(1 US dollar = 43.79 pesos)
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