Thu, Sep 08, 2005 - Page 10 News List

Mega Financial to merge bank units

By Amber Chung  /  STAFF REPORTER

State-run Mega Financial Holding Co (兆豐金控) announced yesterday that its two banking units, International Commercial Bank of China (ICBC, 中國國際商銀) and Chiao Tung Bank (交通銀行), will be merged, starting on March 27 next year.

ICBC will become the main entity after the merger, although it will be renamed Mega Commercial Bank Co (兆豐銀行), Mega Financial said in a filing to the Taiwan Stock Exchange yesterday.

The new bank will have paid-in capital of NT$64.1 billion (US$1.9 billion) and net value of NT$132.6 billion. It will become the nation's second largest bank after the Bank of Taiwan (台灣銀行), with 105 branches nationwide and 25 outlets overseas, according to the filing.

The number of branches could grow if Mega Financial wins the bidding for a 44 percent stake in the Taiwan Business Bank (台灣企銀). Taiwan Business Bank has 125 branches nationwide.

Mega Financial, the nation's second largest financial company by assets, hopes to expand its market share to 16 percent by taking over the Taiwan Business Bank, Mega Financial's spokesman Joseph Shieh (謝劍平) said on Tuesday after the company confirmed it would participate in the Taiwan Business Bank's share sale.

Other competitors in the auction include Chinatrust Financial Holding Co (中信金控), First Financial Holding Co (第一金控) and Fubon Financial Holding Co (富邦金控).

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