Bulletin: G&C Merger With Unity Bank Would Strengthen Business Franchise

MELBOURNE (S&P Global Ratings) June 25, 2019--S&P Global Ratings today said that G&C Mutual Bank Ltd.'s (BBB-/Positive/A-3) proposed merger with Unity Bank Ltd. (unrated) would lift G&C's market share and help it accelerate its franchise growth. G&C and Unity Bank today announced they have signed a memorandum of understanding on a proposed merger. The merger would result in a combined balance sheet of about A$2.4 billion, roughly doubling the size of either entity on a stand-alone basis, resulting in a stronger franchise, and providing some scope to improve operating efficiency. The merger remains subject to both member and regulatory approval. We expect the merger would be completed by September 2020. We see the merger accelerating G&C's already growing franchise strength,

...June 25, 2019 MELBOURNE (S&P Global Ratings) June 25, 2019--S&P Global Ratings today said that G&C Mutual Bank Ltd.'s (###-/Positive/A-3) proposed merger with Unity Bank Ltd. (unrated) would lift G&C's market share and help it accelerate its franchise growth. G&C and Unity Bank today announced they have signed a memorandum of understanding on a proposed merger. The merger would result in a combined balance sheet of about A$2.4 billion, roughly doubling the size of either entity on a stand-alone basis, resulting in a stronger franchise, and providing some scope to improve operating efficiency. The merger remains subject to both member and regulatory approval. We expect the merger would be completed by September 2020. We see the merger accelerating G&C's already growing franchise strength, which we highlighted when we revised the outlook on G&C to positive earlier this year (see "G&C Mutual Bank Ltd. Outlook Revised To Positive On Strong Operating Performance; '###-/A-3' Ratings Affirmed,"...

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