Building societies' merger complete

Marac Finance has merged with Canterbury Building Society and Southern Cross Building Society. Photo / Dean Purcell

Combined Building Society, which is to primarily operate the merged businesses of Canterbury Building Society (CBS), Southern Cross Building Society (SCBS) and Marac Finance, is now fully operational.

In an announcement yesterday, merged group holding company Building Society Holdings (BSH) said all transfers were in place relating to the merger of CBS, SCBS and Marac.

Marac bonds, which were now bonds issued by Combined, were now quoted on the NZX debt market and able to be traded, BSH said.

The merger process is expected to be completed today, when shares in BSH have been allotted. Formal listing of BSH and quotation of its shares are not expected until the end of the month.

On Wednesday ratings agency Standard and Poor's confirmed its ratings on CBS and SCBS.

S&P also withdrew its "BB+/Stable/B" rating for CBS and "BB/Stable/B" for SCBS, at the societies' request, in preparation for them to be folded into the $2.2 billion merged entity. Also, participation in the Crown's extended retail deposit guarantee scheme was approved for Combined Building Society.

- NZPA