BPI-Robinsons merger cleared

The Philippine Competition Commission, or PCC, gave the greenlight to the proposed merger between the Bank of the Philippine Islands and Robinsons Bank Corp. with the former as the surviving entity.

Ayala-owned BPI said the commission through its letter dated last Wednesday affirmed that the merger with Gokongwei-owned Robinsons Bank complies with the government regulations for fair competition which ensures banks offer reasonable prices and good quality of products and services to clients.

The merger clearance was announced Friday through BPI's disclosure to the Philippine Stock Exchange.

BPI, a universal bank, said the merger will maximize resources of Robinsons Bank, a commercial bank, in providing clients a better banking experience.

The proposed merger will unlock various synergies across several products and service platforms, expand the customer and deposit base of both banks and, at the same time, by capitalizing on BPI's expertise and network, enhance the overall banking experience of Robinsons Bank customers, BPI said.

BPI to tap Robinsons clients

Once the merger has been completed, BPI will be able to tap clients in 189 Robinsons Bank's branches and branch-lite units, including 14 branches and 14 branch-lite units of its subsidiary thrift bank Legazpi Savings Bank.

BPI can also offer products through Robinsons Bank's 354 automated teller machines or ATMs, and online and mobile banking channels.

Aside from these, BPI will have the authority to design and adopt products from the digital bank GoTyme Bank Corporation, another subsidiary of the Gokongwei Group.

As a result of the merger, Robinsons Bank is expected to hold approximately 6 percent of the outstanding common stock of BPI, which is limited to issuance of up to 318,912,309 common shares.

BPI said it will proceed with submission of documents to the Bangko Sentral ng Pilipinas and the Securities and Exchange Commission to obtain the rest of the regulatory approvals for the merger with Robinsons Bank.

BPI, the country's third largest bank in terms of assets, and Robinsons Bank, managed by Gokongwei's JG Summit Capital Services Corp. and Robinsons Retail Holdings, Inc., announced the merger proposal in September last year.