BDO acquisition of PCI Equitable Securities
Background of the study
Banco de Oro Universal Bank (PSE: BDO), commonly known as Banco de Oro, BDO, or sometimes BDO Unibank, is the largest bank in thePhilippines. It is owned by the SM Group of Companies, one of the country’s largest conglomerates and owner of the SM chain of malls. Following theBanco de Oro-Equitable PCI Bank merger, the bank has since become Banco de Oro Unibank, Inc.
Equitable PCI Bank (PSE: EPCI) was one of the largest banks in the Philippines, being the third-largest bank in terms of assets. It is the result of the merger of Equitable Banking Corporationand Philippine Commercial International Bank, or PCI Bank. It was known for a wide range of services from savings to insurance and, through its wholly-owned subsidiary Equitable CardNetwork, was the largest Philippine credit card issuer. The bank merged with Banco de Oro Universal Bank in early 2007, and is now branded as “BDO” as its new identity as part of the new Banco de Oro Unibank, Inc.
The Banco de Oro-Equitable PCI Bank merger (2004–2006) was a plan by the SM Group of Companies and Banco de Oro Universal Bank, the fifth-largest bank in the Philippines, to merge withEquitable PCI Bank, the third-largest bank (although it is considered by some as an acquisitionor even as a hostile takeover). The merger was part of a long-term goal of Banco de Oro to become one of the largest names in the Philippine banking industry. It was closed on December 27, 2006 with the formation of Banco de Oro Unibank, Inc.
The plan was controversial in terms that a smaller bank could not possibly acquire a bank much larger than it is. At the time of the merger, Equitable PCI had three times the capital Banco de Oro had. Analysts were worried about the repercussions this could have on the industry. However, the deal had been able to generate a lot of media hype, especially in newspaper editorials.
The merger with or acquisition of Equitable PCI is one of the acquisitions that Banco de Oro has been
Banco de Oro Universal Bank (PSE: BDO), commonly known as Banco de Oro, BDO, or sometimes BDO Unibank, is the largest bank in thePhilippines. It is owned by the SM Group of Companies, one of the country’s largest conglomerates and owner of the SM chain of malls. Following theBanco de Oro-Equitable PCI Bank merger, the bank has since become Banco de Oro Unibank, Inc.
Equitable PCI Bank (PSE: EPCI) was one of the largest banks in the Philippines, being the third-largest bank in terms of assets. It is the result of the merger of Equitable Banking Corporationand Philippine Commercial International Bank, or PCI Bank. It was known for a wide range of services from savings to insurance and, through its wholly-owned subsidiary Equitable CardNetwork, was the largest Philippine credit card issuer. The bank merged with Banco de Oro Universal Bank in early 2007, and is now branded as “BDO” as its new identity as part of the new Banco de Oro Unibank, Inc.
The Banco de Oro-Equitable PCI Bank merger (2004–2006) was a plan by the SM Group of Companies and Banco de Oro Universal Bank, the fifth-largest bank in the Philippines, to merge withEquitable PCI Bank, the third-largest bank (although it is considered by some as an acquisitionor even as a hostile takeover). The merger was part of a long-term goal of Banco de Oro to become one of the largest names in the Philippine banking industry. It was closed on December 27, 2006 with the formation of Banco de Oro Unibank, Inc.
The plan was controversial in terms that a smaller bank could not possibly acquire a bank much larger than it is. At the time of the merger, Equitable PCI had three times the capital Banco de Oro had. Analysts were worried about the repercussions this could have on the industry. However, the deal had been able to generate a lot of media hype, especially in newspaper editorials.
The merger with or acquisition of Equitable PCI is one of the acquisitions that Banco de Oro has been