Members Approve Mega Canadian CU Merger
TORONTO, Ontario and VANCOUVER, British Columbia -- Credit unions voted June 22 at special general meetings here to merge Credit Union Central of Ontario Limited and Credit Union Central of British Columbia to create Central 1 Credit Union.
Nearly 99% of Ontario credit unions and 98.2% of British Columbia's CUs voted in favor of the merger, according to Ontario Central and B.C. Central. The newly-combined CU will have $7.4 billion in assets and represent more than 200 CUs that serve 2.7 million members.
The long-term vision is that other provincial central CUs will join Central 1 to form a national organization, according to both centrals. A search is under way for a CEO of Central 1.
The transaction will see B.C. Central acquiring the assets and assuming the liabilities of Ontario Central at fair market value. New shares will be issued in proportion to member CU assets in each province. Based on current membership in the centrals, Ontario CUs would receive 31% of voting shares and B.C. CUs would receive 69%. The final relative ownership positions will be determined at closing, both centrals said.