PNB-Allied Bank merger to be completed in 2010

The merger of two Lucio Tan-owned lenders Philippine National Bank (PNB) and Allied Banking Corp. is expected to be completed next year following compliance with a directive of a US regulator. Omar Byron Mier, PNB president, told reporters that Tan’s stake in a California-based bank will be sold next year, paving the way for the merger. He said a US-based investor has offered to buy Allied Bank’s 28-percent stake in California-incorporated Oceanic Holdings (BVI) Ltd. "The sale may be completed by the middle of next year," Mier said. Allied Bank’s 28-percent stake in Oceanic Holdings, which owns Oceanic Bank Holding Inc., has been blocking the merger between the two Tan-owned banks following a directive from the US Federal Reserve to Allied Bank to divest of its stake in Oceanic before merging wit PNB. The merger was supposed to have been completed in December last year but was deferred owing to the Fed’s requirement. The global economic slump also made it hard for Allied to find a buyer for its stake in Oceanic Holding as investors chose to go easy on acquisitions and purchases. The merger of Allied Bank and PNB would create the country’s fourth largest lender 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 ranked 11th. Stockholders of the two companies had approved the merger in April 2008. Tan owns 75 percent of Allied Bank and 67 percent of PNB. -GMANews.TV