Four years since the possibility was first discussed two of the largest banks in the Philippines, Allied Bank and the Philippine National Bank, merge together.
Both Lucio Tan-owned banks will maintain their presence worldwide, with more than 600 branches throughout the Asia Pacific region, Europe, the Middle East and North Africa.
Once the full integration of both banks is completed in the next 18 to 24 months, the Philippine National Bank (PNB) remains as the surviving entity. The banks' combined assets are expected to amount to P500 billion, making PNB the fourth largest bank of the Philippines.
Once the Securities and Exchange Commission approved of the merger they called for the reclassification of PNB's authorized preferred shares into common shares. In addition, the number of directors was increased from 11 to 15.
In a move of consolidation, all the issued and outstanding common shares of Allied Bank will be converted into common shares of PNB at a ratio of 130 PNB common shares for each Allied Bank common share.