Application for Combination of Bank of Overseas Chinese and Peikang Credit Cooperative of Yunlin County
Chinese Taipei
Case:
Application for Combination of Bank of Overseas Chinese and Peikang Credit Cooperative of Yunlin County
Key Words:
assign, approval of combination
Reference:
Fair Trade Commission Decision of September 24, 1997 (the 308th Commission Meeting), Decision (86) Kung Chieh Tzu No. 343
Industry:
Financial Industry (6500)
Relevant Laws:
Summary:
1. Bank of Overseas Chinese ("BOC") filed an application for combination to the Commission on August 4, 1997 for its business combination with Peikang Credit Cooperative of Yunlin County. According to this Commission's investigation, BOC is to take over the entire operations, revenues and assets of Peikang Credit Cooperative, which constitutes an act of "combination" within the meaning of the Fair Trade Law. In addition, one of the combining parties (i.e., BOC) has achieved a business volume of NT$14.889 billion for FY1996, which exceeds the NT$2 billion threshold, above which an application for combination is required by the Commission. Therefore, the Commission reviews this application in accordance with Article 11 and 12 of the Fair Trade Law.
2. This is the first application of its kind involving a combination of domestic financial institutions accepted by the Commission. The Commission subsequently issued a letter to the Bureau of Monetary Affairs ("BMA") under the Ministry of Finance, the competent authority for the financial industry, to request opinions and comments. The BMA replied by stating that such application, which was filed by mutual agreement between the applicants, conforms to the financial administration policies and will help enhance the competitiveness of existing financial institutions, promote sound and efficient business operations, reduce the operating cost and improve the service quality.
3. This Commission has resolved to grant approval of combination at issue for the following reasons: (1) Scope of Approval: Approval is hereby granted to BOC's application for business combination with the entire operations, revenues and assets of Peikang Credit Cooperative of Yunlin County pursuant to Article 6, Paragraph 1, Subparagraph 3 of the Fair Trade Law. (2) Reasons: The business combination in this case helps to reorganize and transform credit cooperatives, enhance the competitiveness of financial institutions and improve service quality. With other conditions remaining intact, the market structure is not likely to undergo any obvious change after this combination, which has no immediate potential to restrict competition or to have any negative impact on other enterprises seeking to enter the market. Therefore, the application for combination is hereby approved in accordance with Article 12 of the Fair Trade Law.
Summarized by Wu, Pi-ju
Supervised by Hu, Kuang-yu
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