Tue, Dec 16, 2008 - Page 12 News List

Mega Financial may reconsider bank acquisition

STAFF WRITER

State-run Mega Financial Holding Co (兆豐金控) may reconsider its acquisition of Taiwan Business Bank (台灣企銀) after two failed attempts, local media quoted a company executive as saying yesterday.

Company chairman Wang Rong-jou (王榮周) said that Mega Financial planned to re-seek an approval from the financial regulator to extend its deadline of releasing a 13 percent stake in Taiwan Business Bank, so as to buy time for the acquisition’s evaluation, the Chinese-language Commercial Times reported yesterday.

Vice Minister of Finance William Tseng (曾銘宗) also expressed the ministry’s welcome of such a merger, which he said was based on the premise that it would create synergy for both companies’ employees, shareholders and clients.

According to an internal evaluation, Mega Financial expected the merger with Taiwan Business Bank, which focuses more on the small and medium-sized enterprise sector, would complement its strength in corporate banking.

The planned merger would help Mega Financial, which has 130 branches nationwide, to expand its current network, the report said.

The report also said that the merger would be the fastest way for Mega Financial to expand its existing operations.

If the government allows Mega Financial to acquire Bank of Taiwan’s (台灣銀行) 19.33 percent stake in Taiwan Business Bank, the company would only lack a 1 percent stake to make Taiwan Business Bank one of its subsidiaries, the report said.

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