THE proposed $20 billion merger of Newcastle Permanent and Greater Bank looks almost certain to go ahead with preliminary votes from both organisations favouring the move.
Although both brands will be retained, the corporate name of the merged organisation will be Newcastle Greater Mutual Group Ltd.
Newcastle Permanent held its special general meeting at City Hall this afternoon with chairman Jeff Eather saying based on preliminary votes before the meeting, the organisation was "confident" the resolutions would be passed.
There were about 100 people at the Newcastle Permanent meeting, including a large number of staff. More than 17,000 members had already voted either directly or by proxy before the meeting, with 89 per cent in favour.
It came after Greater Bank Chair, Wayne Russell announced the provisional result at a meeting this morning, saying that more than 75 per cent of eligible members who voted on the merger had voted in favour.
Both organisations announced the votes at the special general meeting were being validated, with the final official result posted later today.
"While we are awaiting validation of the vote before announcing the final voting results, the provisional numbers indicate the special resolution has passed, which is an important step towards merging with Newcastle Permanent," Mr Russell said.
"We thank the members for their active participation in this process."
Once the resolutions are confirmed, the merger will then be subject to final approval by financial regulator, Australian Prudential Regulation Authority (APRA).
In a booklet to members outlining the merger proposal, Perm chairman Jeff Eather said: "While both Newcastle Permanent and Greater Bank are financially strong and well positioned in the market, banking has changed significantly in the past decade.
"Today, there is more complexity and focus on new banking regulations and compliance, alongside increasing consumer demands for enhanced digital options and security.
"Through joining forces, our merged entity will be a more resilient force in the market and put us in the best position we can to continue to deliver the highest value and service to you, our customers."
The Perm board is also recommending the approval.
The proposal includes both brands remaining, with no forced redundancies for at least two years.
The Newcastle Herald will follow this story today with reports after the Perm meeting, and full coverage tomorrow.
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