The Bank of Queensland has received the green light from the The Treasurer of the Commonwealth of Australia to proceed with its acquisition of boutique loans provider ME Bank.
The approval was the only regulatory prerequisite for the transaction to follow through.
The $5.9 billion retail bank has secured the takeover deal with ME Bank for 1.3 billion. The funds will be transferred upon the completion of the transaction.
The handover of ownership rights will officially take place on July 1, as structural changes are only expected to arrive from this date.
The Brisbane-based financial institution recognises the takeover as an important milestone on Bank of Queensland’s pathway to become a “a compelling alternative to the big banks”.
Bank of Queensland said, “It is a defining moment in the transformation of BoQ Group, which will benefit our shareholders, customers and people.”
The amalgamation of the two banks is estimated to upsize the bidder’s operations twofold, elevating Bank of Queensland’s status as a competitor challenging the big four banks.
Shares in Bank of Queensland (ASX:BOQ)
are trading 1.6 per cent lower at $9.09