Overwhelming ‘Yes’ For Adelaide-Bendigo Merger

By Glenn Dyer | More Articles by Glenn Dyer

Related Companies

Today Adelaide Bank (ADB) shareholders voted overwhelmingly in support of the proposal to merge with Bendigo Bank.

The merger is expected to be implemented on November 30, subject to final approval from the Federal Court of Australia on November 16.

"This merger will bring together two very successful banks in their own right with different but complementary business models: Adelaide Bank and its wholesale banking operations and Bendigo Bank's pre-eminent customer focused retail banking operations," said Managing Director of Adelaide Bank, Jaime McPhee.

"This is great news for our shareholders and the shareholders of Bendigo Bank."

Almost 98 per cent of Adelaide Bank shareholders voted in favour of the merger at a vote held in Adelaide this morning.

"We are delighted that Adelaide Bank shareholders share our enthusiasm for the merger and look forward to their ongoing involvement as part of the merged group."

Managing Director of Bendigo Bank, Rob Hunt, said that upon completion of the merger, the immediate focus would be on the successful integration of both businesses.

"This will ensure value creation for all stakeholders including customers and community partners, shareholders and staff."

"We are able to combine two already successful businesses,"

Earlier this year, Bendigo Bank rejected a $2.5 billion takeover bid from Bank of Queensland, much to the surprise of the market.

Then in August, announced that it was planning to join with the smaller Adelaide Bank to create a $4 billion lender.

"Adelaide chose some years ago to pursue a higher priority in its growth of its wholesale activities and has really succeeded. Bendigo chose our path to be a retail bank."

Mr Hunt said the different approaches would complement each other as a merged company.

According to Chairman of Adelaide Bank, Adeke Lloyd, the merger is expected to provide annual pre-tax cost synergies of approximately $60 to $65 million.

Adelaide Bank fell by 0.7%, or 7 cents, to close down slightly at $14.15.

Glenn Dyer

About Glenn Dyer

Glenn Dyer has been a finance journalist and TV producer for more than 40 years. He has worked at Maxwell Newton Publications, Queensland Newspapers, AAP, The Australian Financial Review, The Nine Network and Crikey.

View more articles by Glenn Dyer →