Two Canadian CUs Eye Merger
Ontario, Canada may have its first major credit union merger in years.
The $1 billion DUCA Financial Services Credit Union of Toronto said it has begun discussions to acquire the $160 million Virtual One Credit Union of Mississauga, Ontario with an effective completion date of Jan. 1, 2011.
Virtual One with five branches in southern Ontario and 8,700 members will join DUCA's 12 branches and 35,000 members.
"This is a great fit, both geographically and culturally as the two credit unions seek to enhance value for their respective members through additional service locations" said David Bird, CEO of Virtual One. "The merged entity will be well capitalized and will be able to take advantage of economies of scale as it reaches out to extend its value proposition into new communities."
Upon due diligence and approval from provincial agencies, the formal proposal will be presented to respective memberships later this year.
A DUCA spokesman noted that mergers of large Ontario CUs have been rare in recent years.
"Although DUCA and Virtual One have distinct histories, they have always shared a common commitment to their members, their financial success and the communities in which they live and serve," said a statement. "This commitment will be carried on and strengthened in the combined entity which will employ more than 145 people," said Jack Vanderkooy, president/CEO of DUCA.