News Release
Monday 26 October 2009
Regulatory milestone for Australian Central and Savings &
Loans merger
A proposed merger between two of Australia’s largest credit unions, Australian Central and
Savings & Loans, has received approval to proceed to the member vote.
Regulatory bodies including the Australian Securities and Investments Commission (ASIC) and the
Australian Prudential Regulation Authority (APRA) were satisfied with the details of the merger and
have approved it to progress to the member vote.
Members of both credit unions will now vote on the merger at Annual General Meetings to be held
in Adelaide on 27 November. Voting packs and member information documents will be mailed to
members of both credit unions progressively over the next week.
If the member vote is successful, the merger will create the largest member-owned financial
institution headquartered in Adelaide with 350,000 members and more than $7 billion in combined
assets under management and advice.
The combined credit union will have branches and advice centres in South Australia, Northern
Territory, Victoria, New South Wales and Western Australia.
Savings & Loans Chairperson Bill Cossey said gaining approval to take the merger to the member
vote was an important first step in bringing the two organisations together.
“We believe this merger will result in a credit union with the size and strength to provide a genuine,
member owned alternative to the major banks, and we strongly encourage our members to support
the union,” Mr Cossey said.
“The merger will bring together the best of both organisations and enable us to offer greater value
to members, as well as take advantage of new opportunities in the market.
“Remaining member owned is our main priority, and this merger will provide us with the financial
strength to ensure we remain sustainable and continue serving our members into the future.
“Ultimately, our members will have the final say, and that’s what being a member-owned
organisation is about.”
Australian Central Chairman John Cossons said if the vote is successful, both credit unions would
operate as separate brands for a period of up to 12 months while a new name and brand is
created.
“In the short term, members will notice very little change as it will take some time to integrate our
branches and computer systems,” he said.
“However, to demonstrate the value of the merger, we have already committed to pass on some
immediate benefits to members of both credit unions if the merger is approved.
“Longer term, our name may change but our commitment to members and the communities in
which we operate will remain as strong as ever.
“Through this merger, we’ll be able to offer members an improved range of products and services,
and greater access to their money.”
Mr Cossons stressed that this will not be a takeover, but a true merger of two very equal member-
owned organisations.
“The Boards of both credit unions believe that the merger is in the best interests of members as it
will allow the new, combined credit union to offer improved member benefits,” he added.
FACT SHEET:
Savings & Loans is Australia’s second-largest credit union with 190,000 members, more than 550
staff, more than $3.7 billion in assets under management and advice and more than 30 branches
around Australia.
Australian Central is Australia’s third-largest credit union with 166,000 members, 530 staff, more
than $3.7 billion in assets under management and advice and 32 branches.
The combined entity will have approximately 350,000 members and $7.4 billion in assets under
management and advice.
MEDIA CONTACTS:
Marcus LaForgia, Savings & Loans – 0421 585 740
Kirsty Mosley, Australian Central – 0439 683 353
NEWS 
