BPI, Robinsons Bank announce merger plans

Ayala-led Bank of the Philippine Islands (BPI) and the Gokongwei-led Robinsons Bank (RBank) on Friday announced their planned merger.

In similarly worded news releases, BPI and RBank said their respective boards of directors, along with Robinsons Retail Holdings Inc. and JG Summit Capital Services Corp., approved the banks’ merger “with BPI emerging as the surviving entity, subject to shareholders and regulatory approvals.”

“Upon the effectivity of the Merger after receipt of all necessary corporate and regulatory approvals including the approvals of the Philippine Competition Commission, the Bangko Sentral ng Pilipinas, the Philippine Deposit Insurance Corporation, and the Securities and Exchange Commission, the RBank Shareholders will collectively hold approximately 6% of the resulting outstanding capital stock of BPI,” the banks said.

BPI and RBank said they expected to complete the merger before the end of 2023.

The banks said the planned merger would unlock various synergies across businesses and several products, service platforms, expand both their customer and deposit base, and enhance overall banking experience.

“We are excited for the possibilities that this Merger will unlock given the unique position we are in that will allow us to leverage on the ecosystems of two of the largest conglomerates in the country,” RBank president and CEO Elfren Antonio Sarte, said.

“We are confident that combining RBank’s product innovations and its success in the rapidly growing niche markets with BPI’s scale of operations and formidable reputation can only benefit our customers with better and expanded service,” he added.

“We will work closely with BPI in the coming months to ensure proper integration of the two organizations and to ensure that our customers will be able to transition seamlessly,” Sarte said.

BPI president and CEO Jose Teodoro Limcaoco, said, “We are excited about this transaction and believe that this Merger exemplifies BPI’s strategic effort to expand its client base, accelerate growth, and ultimately increase shareholder value through partnerships with the Gokongwei Group.”

“We plan to effect a smooth transition and integration of RBC and its customers into BPI. Together, we aim to maintain quality banking services and offer additional best-in-class and innovative products to our expanded client base,” Limcaoco said.

“We are also keen on strengthening our ties with the Gokongwei Group even more through various collaboration opportunities across the Gokongwei Group’s vast ecosystem,” he added.

Further disclosures will be made as appropriate, the banks said.

Data from the Bangko Sentral ng Pilipinas as of March 31 showed that BPI was the fourth largest universal and commercial bank in the country with P2.355 trillion worth of total assets while RBank was seventh with P163.9 billion total assets. —NB, GMA News