United Credit Union's merger with Adelaide-based credit union Community CPS Australia will come into effect at the start of November following shareholder approval.
Below is the full announcement:
The merger between prominent Western Australian financial institution, United Credit Union, and industry peer, Community CPS Australia, is scheduled to become effective from 1 November 2008, after members of both credit unions voted overwhelmingly in favour of the amalgamation.
Endorsed at a Special General Meeting held in Perth on Thursday (25 September), the merger will create one of the largest credit unions in Australia, representing a combined membership of more than 175,000.
The business will be known as United Community in WA, while the Community CPS Australia name will be retained in South Australia, the Australian Capital Territory and regional New South Wales.
"Throughout the merger discussions, it was clear there was a strong strategic alignment between the two organisations," said United Chairman, Daniel Cloghan. "Both organisations are strongly committed to the principles of mutuality, and clearly this is what our members want". Among the benefits of the merger are an expanded branch and ATM access network, enhanced products and services, and a greater market diversification.
The merged credit union will have total assets under management of $2.5 billion and more than $300 million of additional funds under advice through a wealth management subsidiary.
From 1 November 2008, the credit union will be lead by Community CPS' current Chief Executive Officer, Kevin Benger. Mr Cloghan will join the board of the merged entity, along with current United Director, Catherine Nance. United's David Hurford will assume responsibility for the day-to-day operation of the organisation's WA business, taking on the role of State Manager.
