The Bank of Queensland has been scouting for potential merger opportunities recently, and according to the Herald Sun, is in talks with Suncorp s banking business, with a view to create a fifth force in the Australian banking market.
The two parties are thought to be discussing options for generating value for both sets of shareholders.
Advantages:
- Suncorp could use an ASX listing to separate its banking and insurance businesses
- A merger would remove competition for Queensland banking
- Both banks can improve their credit ratings, leading to lower fees on government wholesale funding guarantees
- The combined level of deposits and loan assets would be roughly level with St George Bank
Suncorp Metway
ASX Code: SUN
Bank of Queensland
ASX Code: BOQ
Charts from the Market Analyser.
To read the full Herald Sun article, click here.
