MANILA - The Bank of the Philippine Islands on Friday formally announced its planned "merger" with the Gokongwei-led Robinsons Bank Corp.

The board of directors of BPI, Robinsons Bank, Robinsons Retail Holdings Inc and JG Summit Capital Services Corp approved the execution of an agreement between BPI and RBC "with BPI emerging as the surviving entity, subject to shareholders and regulatory approvals," the Ayala-led bank told the Philippine Stock Exchange.

Upon completion of the merger, Robinsons Bank shareholders will collectively hold about 6 percent of the resulting outstanding capital stock of BPI, the bank said.

BPI said the parties expect the deal to be completed before the end of 2023.

"We are excited about this transaction and believe that this merger exemplifies BPI's strategic effort to expand its client base, accelerate growth and ultimately increase shareholder value through partnerships with the Gokongwei group," BPI President and CEO Jose Teodoro "TG" Limcaoco said.

"Together, we aim to maintain quality banking services and offer additional best-in-class an innovation products to out expanded client base. We are keen on strengthening our ties with the Gokongwei group even more through various collaboration opportunities across the Gokongwei group's vast ecosystem," he added.

• BPI confirms talks with Robinsons Bank on 'potential collaboration'
• JG Summit confirms Robinsons Bank, BPI in discussion for 'potential' deal

Robinsons Bank currently has 189 branches and branch-lite units, 354 ATMs with a total of asset of P175.9 billion as of June 2022.

The Gokongwei group also has a digital bank license for GOTyme, which is expected to be fully operational this year.

Meanwhile, BPI is the country's 4th largest bank in terms of assets as of March 2022, according to the data from the Bangko Sentral ng Pilipinas.

• Digital bank GOTyme eyes mid-2022 launch: Lance Gokongwei
• Gokongwei-backed digital bank GoTyme to offer global debit card

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