SCC Chartered Accountants

Treasurer gives the nod to Westpac and St George

The Federal Treasurer, Mr Wayne Swan, has announced that he has given his approval of Westpac's proposed acquisition of St George Bank.

Approval will ultimately be conditional upon the agreement of the shareholders of St George Bank to the proposal and the endorsement of the relevant scheme of arrangement.

"The merged entity will have a larger balance sheet and capital base, as well as broader access to funding markets, making it better placed to withstand systemic shocks. The St George banking brand will also benefit from Westpac’s lower funding costs, helping it to offer lower interest rates on loans." Mr Swan stated.

The approval was also subject to certain conditions.

Under the conditions, Westpac is required to maintain the existing number of Westpac and St George branches and ATMs, including in non-urban areas; retain all Westpac and St George retail banking brands including Bank SA; maintain dedicated management teams for St George and Westpac retail banking distribution and retain a corporate presence in Kogarah, NSW.

The conditions will also require the removal of foreign ATM fees for Westpac customers using St George ATMs and vice‑versa.