June 10, 2014

PNB looking to bid for UCPB

Philippine National Bank (PNB) is reportedly looking to bid for the state-owned United Coconut Planters Bank (UCPB). In a disclosure to the Exchange yesterday, the bank said that it will be conducting a due diligence review of UCPB for potential acquisition.

An officer from UCPB, however, was quoted by BusinessWorld as saying that the sale terms are not yet ready and will likely be released closer to the end of the year. In the meantime, Aside from UCPB, the bank president was quoted as saying that the bank is also looking at two other small targets for acquisition.

Our take: A potential acquisition of UCPB would solidify PNB’s position as the 4th largest private universal bank, with assets of up to P900b. The acquisition, however, may present some execution challenges, considering that PNB has recently merged Allied Bank into its fold.

If the acquisition were to happen, PNB would have to work double-time in order to squeeze the synergies from its merger with Allied Bank while integrating UCPB’s operations into its own.– WealthSec