VietinBank signed M&A agreement with PG Bank and comprehensive partnership agreement with Petrolimex
On May 22nd 2015 in Hanoi, Vietnam Joint Stock Commercial Bank of Industry and Trade (VietinBank) signed the M&A deal with PG Bank & the comprehensive cooperation agreement with Petrolimex.
| VietinBank Chairman - Mr. Nguyen Van Thang and Petrolimex Chairman - Mr. Bui Ngoc Bao signed the merger documents |
Attending the ceremony were Mr. Nguyen Phuoc Thanh - SBV Deputy Governor, representatives of the Government Office, State Bank of Vietnam, the Ministry of Industry and Commerce, the State Securities Commission; Mr. Bui Ngoc Bao - Petrolimex Chairman, PG Bank Chairman, Mr. Tran Van Thinh - Petrolimex General Director, Mr. Nguyen Van Thang - VietinBank Chairman; Mr. Le Duc Tho - VietinBank General Director etc…
Recognized for its financial strength and stability, VietinBank is consistently the pioneer in the implementation of every guideline of the State Bank of Vietnam Governor in the banking sector restructuring process. Following the restructuring process, VietinBank has been active in supporting other commercial banks in the country to enhance their financial capability, reputation, secure the benefits of shareholders and customers and contributes remarkably to the banking system stability.
The inclusion of PG Bank is assessed as one of the typical transactions in light of Project 254 set by the State Bank of Vietnam which focuses on the banking sector restructuring. The acquisition reflects Vietinbank’s determination and commitment in the implementation of crucial policies set by the Government and the State Bank of Vietnam in order to enhance the operational capacity of banking sector, thus contributing to socio-economic stability and development.
The M&A transaction between PG Bank and VietinBank is conducted on a voluntary basis and based on the principles of objectivity, transparency, market practice consistency and compliance with the provisions of law. Supported by the two banks’ shareholders and the State authority, especially the State Bank of Vietnam, April 14th 2015 marked an important date when the General Meeting of Shareholders of both banks officially passed the proposal on the M&A deal between two financial institutions.
By the acquisition of PG Bank, VietinBank is strongly positioned to enhance its competitiveness as a larger credit institution is formed in all aspects. The significant change will allow VietinBank to capture more trade and investment flows as well as strengthen operational scale, network, customer base.
The M&A will deliver more surplus values and long-term stability to the depositors, employees and shareholders of both financial institutions. All rights and legal obligations towards the customers of PG Bank will be completely insured and assumed by merger bank. VietinBank"s existing customers and customers obtained from PG Bank will have the opportunity to use a broad array of diversified financial products and services of better quality.
| General Director Le Duc Tho and Tran Van Thinh Director General signed comprehensive cooperation agreement between VietinBank and Petrolimex. |
VietinBank Chairman - Mr. Nguyen Van Thang, who spoke at the signing ceremony, said VietinBank is committed to assume all rights and obligations of PG Bank to depositors in accordance with the prevailing law and regulations. All legal rights of PG Bank depositors will be fully guaranteed by VietinBank and it will as well, dedicate to provide the best quality service and generate the most value for PG Bank customers.
The acquisition of PG Bank has a significant impact towards the strategic, long- term and organic relationship between VietinBank and Petrolimex - major shareholder who contributed primarily to the shaping of PG bank competitive advantages. This is the key success factor of the M&A deal and VietinBank position will remained robust post-acquisition.
Commitments of both parties are stipulated in the comprehensive partnership agreement between VietinBank and Petrolimex which is irrevocable and to take effect in at least 10 years. According to the terms, VietinBank and Petrolimex are committed to becoming long-term and comprehensive strategic partners in all aspects of their business including the primarily use of one another’s products and services along side with the creation of favorable conditions to support and develop business activities. The multifaceted collaboration rests on the basis of making full use of each party’s strengths and advantages in order to strengthen their competitive positions.
The signing of merger documents with PG Bank and comprehensive cooperation agreement with Petrolimex is the foundation to conclude the M&A deal; it opens up various business opportunities and delivers more superior benefits for all related parties. This marks the starting point for the evolution of comprehensive cooperative and long-term partnership between VietinBank and Petrolimex.
Xuan Nguyen
