Westpac to Acquire St. George Bank
Westpac Banking Corp (WBK) has reached a deal to acquire fellow Aussie bank St. George Bank Limited, a deal that will create Australia's largest financial services firm by market cap, according to the companies.
The all-stock deal values St. George at A$18.6 billion (US$17.5 billion), or A$33.10 a share, a premium of 28.5% to the closing price of St. George shares on May 9 in Australia. St. George shareholders will receive 1.31 Westpac shares for each St. George share and own 28.1% of the new entity. They will install three directors on the new board.
According to a joint press release, the deal will also create Australia's largest home lender, which will control a quarter of the Australian home loan market. The combined institution will also manage A$108 billion in funds. It will have 10 million customers and a double-A credit rating, providing greater access to funding,
"The best of each bank's product and service capabilities can be extended across customer segments, driving significant revenue growth," said Gail Kelly, Westpac's CEO, in the release.The deal is still subject to a two-week due diligence period during which St. George is prohibited from seeking out competing bids. The deal must be approved by shareholders and regulators. Westpac's American depositary shares, which trade in the U.S. on the NYSE, closed Tuesday down $3.61, or 3%, at $117.72.
Select the service that is right for you!COMPARE ALL SERVICES
Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV