Bank South Pacific (BSP) has signed a share purchase agreement with the Commonwealth Bank of Australia (CBA) to purchase Bank of Fiji, Colonial Fiji Life and associated companies.
Moreover, BSP and CBA intend to enter into a transition services agreement where CBA will continue to provide certain support services to the Fiji operations. This is expected to include the services of the current managing director, Laurie Mellsop and the chief financial officer Michael Collins and other senior seconded staff.
Ian Clyne, managing director and CEO of BSP, said: “This transaction positions BSP as one of the largest banking groups in the Pacific region. Along with the BSP’s existing operations in Fiji, Solomon Islands and Niue it offers the people of the Pacific a locally owned bank with a unique understanding of the their special financial needs. BSP is now uniquely placed to take advantage of the growing trade & business flows between Fiji, PNG and Solomon Islands.”
Norea Beangke, chairman of BSP, said: “BSP is working towards creating a truly meaningful Pacific Banking franchise which can be more than competitive with our Australian counterparts, and the bank has a true long term commitment to the development of the Pacific Region.”
However, the transaction is subject to regulatory approval by Bank of Papua New Guinea and the Reserve Bank of Fiji.
