Mecu Considers Expansion Plan

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27th January 2009, 07:16pm - Views: 823
Credit Union Considers Expansion Plan

Embargoed until Wednesday 28th January

Victoria's largest credit union mecu Limited announced today it is in
discussion with Bendigo based RegionalOne Credit Union regarding a
possible merger.

According to mecu Chairman Mr Peter Crocker, members, staff and regional
Victorian communities would benefit from this proposed merger, which
combines the strengths of each credit union.

"The mecu Board believe this merger between our two credit unions will
create opportunities for members and staff, which only strong, progressive
mutually owned financial institutions can deliver", Mr Crocker said.

mecu CEO Mr Phylip Doughty said that mecu has become a nationally and
internationally respected credit union well recognised for its commitment to
environmental and social responsibility, cooperative principles and for
delivering member benefit through its market leading interest rates on
deposits and loans as well as its equitable approach to charging fees.

"Our two credit unions share a common commitment to superior financial
services for all members and their families. We each understand and are
committed to supporting regional Victorian communities", said Mr Doughty.

If the merger proceeds the combined RegionalOne and mecu will create one
of Australia's largest credit unions with assets exceeding $2billion, more than
$220million in capital, 30 Service Centres located throughout the country and
around 300 staff. The transfer of RegionalOne to mecu will deliver one of the
country's strongest credit union balance sheets.

Mr Doughty explained that staff and branch stability are a key consideration in
the discussions.

"All RegionalOne branches and branch staff will be retained, should the
merger proceed", said Mr Doughty.

Both RegionalOne and mecu are now conducting a systematic appraisal of
information, which will clearly demonstrate the benefits of a merger to
members in terms of interest rates, fees, services and access.

Mr Doughty said discussions shall continue over the next month and members
of both credit unions will be advised of the outcome. If both Boards agree that
the benefit to members and the strategic positioning justify a merger, then a
formal recommendation to merge the two credit unions would then be
presented by the Board of RegionalOne to its members at a Special General
Meeting to be held during the first half of 2009.

END.

For mecu comment contact: mecu CEO Phylip Doughty on 03 9854 4646 or
mecu General Manager Development Rowan Dowland on 9854 4644, mobile
0418508718

SOURCE: mecu



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