Thanachart Bank – Thai Military Bank merger without layoffs

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A press conference was held to announce the merger of Thanachart and Thai Military Banks.
A press conference was held to announce the merger of Thanachart and Thai Military Banks.

Bangkok, 11th August 2019 (NNT) – The merger of Thanachart Bank and Thai Military Bank will make it the country’s sixth largest without layoffs of bank employees.

In a joint press conference, executives of Thanachart and Thai Military Banks announced that ING Group will hold a 21% share in the merged bank, followed by TCAP’s 20%, Scotiabank’s 5% and the Ministry of Finance’s 18% share. The balance of 34% will be for individual investors. The merger is expected to be completede in 2021.

Deputy Finance Ministry Permanent Secretary Chumphol Rimsakhon said the merger will bring over 10 million customers of the new bank while the Ministry of Finance plans to invest no less than 11 billion baht in it.

The banks’ personnel from, executive to lower levels, will not be laid off but will have their duties adjusted. However, if any official feels uncomfortable, they may resign and receive the standard compensation.

Finance Minister Uttama Savanayana confirmed the merged bank will be the country’s sixth largest with some two trillion baht in assets and the Ministry of Finance as a shareholder. The merged bank will still be named the Thai Military Bank.