Sacombank to merge with Eximbank

The merger of Sacombank and Eximbank is no longer a mere rumour, confirmed Eximbank Chairman Le Hung Dung yesterday, admitting that the two banks have been in negotiations.

The merger talk was initiated when Eximbank acquired a 9.73 percent stake in Sacombank from ANZ Banking Group. Virtually no information was disclosed about the deal, prompting rumours of a merger in the pipeline.

Dung told reporters that the merger would be a good idea if it met necessary conditions.

The two banks will become major players in the nation's banking sector, with more than 600 branches, a charter capital of VND30 trillion (US$1.4 billion) and assets worth VND400-500 trillion ($19-24 billion).

Sacombank has a charter capital of VND10.7 trillion ($500 million), while Eximbank has nearly VND12.4 billion ($590 million). When the two banks merge, the new entity capital and assets will currently dominate State-owned banks like Vietcombank, Agribank, Vietinbank and the Bank for Investment and Development of Vietnam (BIDV).

The merger will contribute to national economic development and the restructuring of the banking sector by reducing the number of banks and increasing the overall health of the financial system, Dung said.

However, any deal would require the approval of the State Bank of Vietnam and other relevant authorities as well as shareholders of both banks.

Source SGGP, Translated by MT

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