Marac merger with building societies could go ahead this year

CBS told investors at its AGM they can expect to vote on the proposal in November, while Southern Cross BS put forward December as a date for the merger to be completed when it wrote to stakeholders earlier this year. Though the firms have previously flagged the middle of next year for when a combined entity will apply for a banking licence.

The three firms are undertaking due diligence on a merger of the building societies, which would then be acquired by Marac, with an eye on becoming the country's first locally-owned listed bank.

That would complete Marac's goal of becoming a bank, which took a knock last year when Standard & Poor's cut its credit rating to a sub-investment BB+, below the Reserve Bank's required BBB- to get a licence.