MANILA, Philippines - The Gotianun-owned East West Banking Corp. (EastWest Bank) has completed its acquisition of all of the shares of AIG PhilAm Savings Bank Inc., PhilAm Auto Finance & Leasing Inc. and PFL Holdings Inc.
The acquisition closure follows the conditional approval granted by the Bangko Sentral ng Pilipinas (BSP) on Feb. 26 this year.
The acquisition of AIG Philam Savings Bank by EastWest Bank last January is part of the global effort of the American International Group (AIG) to sell the majority of its global assets to raise funds to pay its huge debt to the US government.
AIG and Lehman Brothers were among the global financial institutions that succumbed to heavy exposures directly or indirectly as a result of the US sub-prime crisis.
EastWest Bank chairman Jonathan Gotianun said the bank allocated a little over $44.9 million to acquire the three assets.
“We are moving ahead of schedule while the completion of the acquisition takes us another step closer to the merger of the two institutions,” Gotianun added.
He estimated that the full merger of the two institutions will take effect within the year, and that “synergies will definitely arise which will result to improved service levels.”
Right after the full merger, auto and personal loan borrowers and credit cardholders will be able to apply and make payments at any EastWest Bank or former AIG Philam Savings Bank branches.
EastWest Bank branches will start accepting payments from borrowers of the cash facility. Depositors will also be able to deposit in any of the two banks’ branches after conversion of AIG Philam Savings Bank to EastWest Bank branches.