Heartland Bank plans $620 million acquisition of TSB in New Zealand merger
New Zealand Heartland Bank has announced plans to acquire regional rival TSB for $620 million. The deal marks a new step in years of consolidation in the country's retail banking sector. The Reserve Bank will review the agreement within 60 days.
RNZ Business · RNZ NewsHeartland Group Holdings announced on the Wellington stock exchange a plan to acquire New Zealand retail bank TSB for NZ$620 million. According to RNZ Business, the deal would end roughly 130 years of independence for New Plymouth-headquartered TSB while lifting Heartland's total assets to $15 billion.
Heartland CEO Andrew Dixson said in a press note that the move was 'the most important step in our strategy to strengthen rural New Zealand's banking access'. Diana Bertram, chair of TSB's owner Toi Foundation, said the proceeds 'will be directed to Taranaki region education and health initiatives'. Forsyth Barr analyst Aaron Ibbotson wrote in a client note that 'the deal promises above-expected synergies for restructuring regional banking cost bases'.
Daniel Trinder, director of institutional conduct at the Reserve Bank of New Zealand, said a dominant-position review would be completed within 60 days. ANZ New Zealand chief economist Sharon Zollner said 'with OCR-related rate cuts, the active loan market is regaining momentum'. Heartland shares rose 3.1% in after-hours trading. This report does not constitute investment advice.
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