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Australia: RACQ proposes merger with QT Mutual Bank

 |  April 18, 2016

The RACQ is set to become a new player in banking, with a proposed merger with QT Mutual Bank expected to be completed by the third quarter of 2016. The proposed merger would create a banking subsidiary within the RACQ Group, which along with the automobile club also included services, such as insurance.

The combined assets of the merged entity would be $3.9 billion and it would have about 1.6 million members.

QT Mutual chief executive Steve Targett said the merger would require a vote of at least 25 per cent of its members, of which 75 per cent would have to vote in the affirmative. There would be no requirement for a vote of RACQ members.

Mr Targett said he was confident it would pass and saw the merger as an opportunity for otherwise unlikely growth.

“The beauty for us is we’ve got 10 of our 14 branches in and around Brisbane, so (the merger) will give us the ability to expand into regional centres and regional Queensland,” he said.

Full Content: Sydney Morning Herald

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