Allied-PNB merger stalled anew

Allied Bank’s merger with PNB was stalled anew after it failed to divest its shares in California-based Oceanic BVI.

The buyer of the stake in Oceanic BVI based had withdrawn his offer to buy 27.87-percent stake in the  California bank, according to a Philippine Stock Exchange disclosure, as cited by a Philippine Daily Inquirer report.

Allied Bank is required by US banking regulators to divest its stake in Oceanic Bank prior to its union with the Philippine National Bank, which will be the surviving entity in the forthcoming merger.

According to the disclosure, Allied’s merger with PNB will still be pursued, and the integration activities will continue with a view to improve revenue opportunities and operational efficiencies for both banks.