As part of the deal, Bendigo Bank will buy Adelaide Bank and offer shareholders 1.075 of its shares for every Adelaide Bank share, The Age reported. Adelaide Bank shares have been valued at A$17.74 each.
According to Reuters, the combined entity will be known as Bendigo and Adelaide Bank Limited and will have A$43 billion in loans with more than 4,000 members of staff. In terms of market value, the new bank would rank seventh among the country’s lenders.
Several months ago, Bendigo Bank had declined a proposed merger with Bank of Queensland, but had confirmed that it was in talks with Adelaide Bank before it rejected the offer from Bank of Queensland, The Age said.
The new venture is expected to create customer- and partner-focused financial services organization, ABC News reported.
