Compare Credit Cards
- Credit Cards Home
- Balance Transfer Rate
- Low Interest
- No Annual Fee
- Reward Credit Cards
- Business Credit Cards
- Gold & Platinum
- Debit Cards
Compare Banking
Compare Loans
Compare Insurance
- Insurance Home
- Health Insurance
- Home Insurance
- Life Insurance
- Motor & Bike Insurance
- Travel Insurance
Investment Providers
Links
Markets Still Undecided Over Potential Bendigo And Bank of Queensland Merger
The implications of a proposed merger between Bendigo and Adelaide Bank and Bank of Queensland is still being weighed by financial markets, who have yet to bestow their blessing on such a deal.
A report in The Australian suggested that the chairmen of the two lenders met recently to discuss the potential for a merger which would be valued at $5.5 billion.
According to the report, it is believed that the two discussed the potential benefits of a transaction, and in particular, whether a deal would result in a higher credit rating for the merged financial institution.
Currently both lenders carry a BBB+ rating which implies that their funding costs are higher than the Big Four Australian banks, all of whom are rated AA.
Ratings agencies on Thursday declined to issue guidance, citing that it was still too early, and that there was a requirement for “financial metrics” before the implications on credit ratings could be calculated.
The Australian, which quoted an unnamed source close to Bendigo and Adelaide Bank said that poor relations between the two lenders would make a merger difficult. Bendigo chairman Robert Johanson has a very public poor relationship with BoQ chief executive David Liddy.
The source also suggested that Bendigo did not feel compelled by the benefits of a merger in the same was as BoQ.
BoQ has long desired to be an acquisition target, but in its quest to be acquired, has so far failed to find a buyer or a marquee shareholder.
In an interview with The Deal, BoQ chief Liddy said he believed that consolidation within the mid tier regional lending space was inevitable and that if there was interest by Chinese lenders in Australian banks “send them to Queensland”, in direct reference to his organisation.
Compare Australian Credit Card Deals
Related posts
Comments
Leave a Reply