Merger of PNB, Allied Bank seen early next year

MANILA, Philippines - The long-delayed merger of Philippine National Bank (PNB) and Allied Banking Corp. is expected to finally push through with the sale of taipan Lucio Tan’s stake in a California-based bank by the middle of next year.

PNB president Omar Byron Mier said in an interview with reporters yesterday that a US-based investor has offered to buy Allied Bank’s 28-percent stake in California-based Oceanic Holding (BVI) Ltd. “The sale may be completed by the middle of next year,” Mier said.

The disposition of the 28 percent stake of Allied Bank in Oceanic Holding that owns Oceanic Bank Holding Inc. is stalling the merger between PNB and Allied Bank.

The US Federal Reserve has required Allied Bank to dispose of its 28 percent stake in Oceanic Bank prior to its merger with PNB. The merger was supposed to have been completed last December of 2008 but was pushed back to the middle of this year.

The merger was further pushed back as the sale of Oceanic Holding in Oceanic Bank was delayed due to the global economic slump.

The merger between the two Tan banks would create the country’s fourth largest bank in terms of assets and third biggest in terms of the total number of branches. PNB is currently ranked fifth in assets while Allied Bank is at 11th spot.

The merger between PNB and Allied Bank was approved by the stockholders of both banks as early as April last year. Tan controls approximately 67 percent of PNB and 75 percent of Allied Bank.

Both banks have already made significant progress to fast-track the integration process. Likewise, both banks have already interconnected their automated teller machines to enable cardholders to do balance inquiry and cash withdrawals from each other’s ATM free of charge.

Both PNB and Allied Bank have also undertaken the relocation of branches in several areas all over the country.