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In a statement, Heritage Bank said it has entered into a non-binding agreement with the Adelaide-based People’s Choice Credit Union to assess the benefits to members of a merger.
“If a merger were to take place, members of both organizations would benefit from being part of one of Australia’s largest customer-owned banking organizations with around 700,000 members and $ 22 billion in total assets,” said said both groups.
“The proposed merger has a strong strategic rationale given the complementary capabilities and geographic footprint of both parties. By joining forces, the merged entity would be of a size and scale that would enable both organizations to offer more to their members through improved products, services, digital capabilities and competitive pricing. “
The two companies said they did not commit to any branch closures or layoffs of non-executives as a result of the merger. The two groups would have equal representation on the board of directors and head offices would be maintained in Queensland and South Australia.
“Heritage and People’s Choice have been in discussion for several months. We recognize that we are two strong companies, with approximately the same number of members, employees and assets, so if a merger occurs it would be a true merger of equals, â€said Michael Cameron, president of People’s Choice .
“While we are both successful organizations, joining forces would provide us with the scale, profile and nationwide presence to redefine mutual banking for current and future members,†said Peter Lock, Director General of Heritage Bank.
Both groups said a “detailed and in-depth due diligence process” was underway around the proposal and that members would vote in early 2022 if it went ahead.
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