Westpac Internet -St.George and Westpac merger FAQ

St.George and Westpac merger FAQ

Frequently asked questions regarding the proposed merger of Westpac and St.George

General information
I'm a Shareholder too

General information

What has Westpac announced?
St.George and Westpac have confirmed with the Australian Stock Exchange that they have agreed key terms for an all-scrip merger and also signed a Merger Implementation Agreement to create Australia's leading financial services company for customers, shareholders and employees.

Under the merger, the combined entity will have a significantly stronger platform for growth in Australia and New Zealand. All brands and branch networks will be retained with further investment in customer service. Customers should be aware that the proposed merger will be subject to a range of government, legal, regulatory and St.George shareholder approvals.

Why is Westpac considering this?
The merger of St.George and Westpac would create Australia's leading financial services company. Westpac and St.George are each strong businesses with iconic brands, strong and highly complementary cultures and long track records of delivering for customers, employees, shareholders and the community. St.George and Westpac's combined 10 million customers would benefit from an enhanced offering in terms of product range, expanded distribution and financial strength, while still preserving their relationships with existing employees, products, customer touch points and branding.

The combined business would be a market leader in Australia. Specifically, it would be:

Australia's leading home lending provider
Australia's largest wealth platform provider with funds under administration of $108 billion
Australia's largest bank by market capitalisation at approximately $66 billion on a pro forma basis.

Is Westpac merging with St.George now?
St.George and Westpac and signed what is called a "Merger Implementation Agreement". This reflects the key commercial terms which have been agreed, and paves the way for the proposal to be taken to St.George shareholders. The proposed merger still requires the approval of a range of legal, government and regulatory authorities, as well as St.George shareholders. We will keep customers informed as the deal progresses.

When would a merger take place?
It is early days in finalising the proposed merger and it still requires the approval of a range of legal, government and regulatory authorities, as well as St.George shareholders.

Do I need to do anything?
No. There is no action required by Westpac or St.George customers.

I also have a relationship with St.George. Will this transfer to Westpac or will my Westpac relationship transfer to St.George?
We understand many customers may have a relationship with both Westpac and St.George. It is business as usual at both companies and you should keep banking as you do now.

Discussions are taking place on the basis that both brands and distributions networks would be kept. The combined entity will be a stronger company allowing us to deliver even better customer service and product offerings.

What is happening to your employees?
Our people will benefit from being part of a larger, stronger and even more diverse organisation with more career opportunities.

Both Westpac and St.George have leading policies and practices for people, and in many respects we're a great cultural fit because we are both very customer focused.

In terms of integration and impact at a personal or business area level, it's too soon to know details at this stage. What we do know is that key agreed merger terms include keeping all brands and branch networks.

I'm a Shareholder too

I'm a St.George shareholder, what's the offer?
The St.George Board has indicated that it intends to recommend to its shareholders that they accept Westpac's offer.

Westpac's offer is for 1.31 Westpac Shares for each St.George ordinary share held at the record date subject no superior proposal emerging and an independent expert confirming the proposal is in the best interests of St.George shareholders.

The proposed merger value represents a premium of 28.5% to the closing price of St.George shares on 9 May 2008^{1, 2}.

St.George shareholders will own 28.1% of the combined entity and will share in the expected benefits of combining the two organisations.

I'm also a Westpac shareholder. What do you expect will happen to Westpac's share price as a result of all this?
Investor confidence in us has been reflected in our share price over the medium term and has enabled us to consider this merger. We cannot comment on future moves in the Westpac share price. The share price is influenced by various market factors.

Browse our archived presentations: