Ontario CUs Merging
In at least one Canadian province — Ontario — the move toward credit union mergers continued this week with the $55 million Luminus Financial CU acquiring the $17 million Food Family CU, both in Toronto.
The transaction, the fourth in the past year for Luminus, is due for completion next month following member and regulatory approval, said George De La Rosa, CEO of Luminus.
De La Rosa said the decline of small CUs in Ontario underscores their desire to offer new products and technology through larger partners. The number of CUs in the province, he noted, has declined from 160 to 170 several years ago to 120 today.
Luminus, he said, changed its name June 1 from its previous moniker, Starnews, to emphasize its mission of demonstrating innovation to a broader audience.
Food Family, which serves the 26,000 employees of the Metro chain, said it sent out a request for proposals to Ontario CUs in September 2010 and made its final decision in June.
“I can’t say I follow what is happening among small credit union in the States but I do admire what you do in marketing and in other areas as well,” De La Rosa said.