BOQ acquires ME Bank in massive $1.3 billion deal

Bank of Queensland announced it will be acquiring industry super fund-owned lender ME Bank for $1.3 billion, in a move key stakeholders have called “a permanent shift for the better in the Australian banking landscape.”

It comes following a tense bidding war over the weekend which saw BOQ beat out both ANZ Banking Group and Bendigo Bank for the keys to the challenger bank, which made a profit of $80.85 million last financial year.

The takeover will be funded by an underwritten capital raising of $1.35 billion, and is expected to be completed by the end of the 2021 financial year, pending regulatory approval.

With the addition of ME Bank, BOQ Group’s pro forma total assets will now come to $88 billion and deposits now total more than $56 billion.

Chairman of ME Bank, James Evans said the decision was unanimously supported by the bank’s shareholders, and was made with the best interests of both customers and employees in mind.

“This agreement brings together two culturally aligned organisations to form what will be an enhanced and influential banking alternative for customers,” he said.

“The combined group will be able to offer a wider network of service options, deeper resources, and the added reassurance that comes with a larger banking organisation.”

BOQ managing director and chief executive George Frazis said the combination of the two businesses is a “defining” moment in BOQ’s ongoing transformation. 

“Critically, ME Bank delivers material scale, broadly doubles our Retail bank, and provides geographic diversification. The ME Bank brand is also a great fit with the BOQ and Virgin Money brands, creating customer-centric alternatives in Australia,” he said.

“It is an exciting day to see two strategically and culturally-aligned businesses come together and we look forward to continuing to build ME Bank’s strong brand, accelerate growth and create new opportunities for our people and the Group.

“We are on track with our strategic transformation and we anticipate that the combination of the two businesses will enable us to accelerate our digital strategy towards a cloud based common digital Retail bank technology platform.”

For more news from the banking world, visit our home loan news hub. And if you’re after an idea of where interest rates currently sit, head over to our home loan comparison page, or browse the selection below.

Home loan comparisons on Mozo - last updated February 27, 2021

Search promoted home loans below or do a full Mozo database search. Advertiser disclosure.
  • Smart Booster Home Loan

    1 Year Discounted Variable Rate, Owner Occupier, Principal & Interest, <80% LVR

    interest rate
    comparison rate
    Initial monthly repayment
    1.99% p.a.variable for 12 months and then 2.48% p.a. variable
    2.47% p.a.
    Compare
    Details
  • Basic Home Loan

    Fixed, Owner Occupier, Principal & Interest, LVR 70-80%

    interest rate
    comparison rate
    Initial monthly repayment
    2.09% p.a.
    fixed 2 years
    2.56% p.a.
    Compare
    Details
  • Mozo Experts Choice 2020
    UHomeLoan - Discount Offer

    Owner Occupier, Principal & Interest

    interest rate
    comparison rate
    Initial monthly repayment
    2.34% p.a. variable
    2.34% p.a.
    Compare
    Details
  • Mozo Experts Choice 2020
    Celebrate Variable Home Loan

    <60% LVR, Owner Occupier, Principal & Interest

    interest rate
    comparison rate
    Initial monthly repayment
    2.19% p.a. variable
    2.19% p.a.
    Compare
    Details
  • Special Fixed Rate Home Loan

    Owner Occupier, Principal & Interest

    interest rate
    comparison rate
    Initial monthly repayment
    1.99% p.a.
    fixed 4 years
    3.45% p.a.
    Compare
    Details
placeholder

Talk to a Mozo home loans expert

Buying your first home, refinancing your existing home or thinking of investing? Speak to Steve, our home loans expert today!

Get Started

^See information about the Mozo Experts Choice Home Loans Awards

Mozo provides general product information. We don't consider your personal objectives, financial situation or needs and we aren't recommending any specific product to you. You should make your own decision after reading the PDS or offer documentation, or seeking independent advice.

While we pride ourselves on covering a wide range of products, we don't cover every product in the market. If you decide to apply for a product through our website, you will be dealing directly with the provider of that product and not with Mozo.