Tasmania’s largest bank has proposed a merger with Queensland-based Auswide Bank, in a move that MyState says will benefit customers and shareholders.
The deal, announced on Monday, is subject to the support of Auswide shareholders and the approval of the Supreme Courts of Queensland and Tasmania.
MyState Bank CEO Brett Morgan said the merger would create significant cost synergies and is consistent with the bank’s growth strategy.
“The combination of two high-quality and complementary businesses … brings significant scale advantages to the group,” he said.
The merged entity would have a pro-forma loan book of $12.5 billion, net assets of $755 million and total deposits of $9.6 billion.
Under the proposed merger, Auswide shareholders would receive 1.112 new MyState shares for each Auswide share they hold.
MyState Chair Vaughn Richtor said the bank was excited about the potential for value creation from merging two “sound customer-focused businesses”.
The merger is expected to be completed by the end of the year, if approved.
