The Bangko Sentral ng Pilipinas (BSP) has approved the merger between the Ayala-led Bank of the Philippine Islands (BPI) and Gokongwei-led Robinsons Bank Corp., issuing Resolution 1633 last December 14. As per the merger agreement, BPI will be the surviving bank.
According to BPI, it will give out 314 million shares, or about 6% of the common shares, to Gokongwei Group to acquire the Robinsons Bank.
The two parties are now waiting for clearance from the Securities and Exchange Commission before proceeding with the merger. BPI’s president and CEO, Jose Teodoro “TG” Limcaoco, stated that the target date for the completion of the merger was in early 2024.
Robinsons Bank provides a range of products and services to corporate, commercial, and retail clients through its 189 branches and branch-lite units. It also offers 354 automated teller machines and online and mobile banking channels.
With the merger deal, BPI aims to unlock synergies between the two banks and the Gokongwei Group’s vast business interests, such as food manufacturing, air transportation, real estate, property development, and retail. It will also acquire its 20% stake in GoTyme, a digital bank in the Philippines owned by the Gokongwei Group and Tyme Group.
“The merger will also expand BPI’s access to the network of the Gokongwei Group, especially to the Filipino-Chinese market segment, which has been the significant advantage of our closest competitors,” said Limcaoco.