Taishin-Shin Kong Merger Approved by Taiwan's Top Financial Regulator

Deal News | Mar 31, 2025 | EIN

Taishin-Shin Kong Merger Approved by Taiwan's Top Financial Regulator

The merger of Taishin Financial Holding Co. and Shin Kong Financial Holding Co. has reached its final stage after receiving approval from Taiwan's financial regulatory body, the Financial Supervisory Commission (FSC). The two companies have been discussing the merger intermittently since 2002, but it finally gained traction after Shin Kong Financial's board became more open to consolidation efforts. The newly formed TS Financial Holding Co., Ltd., will rank as the fourth largest financial holding company in Taiwan with assets valued at NT$8.43 trillion (US$253.78 billion). The merger entails a stock swap and requires Shin Kong Financial shares to be delisted from the Taiwan Stock Exchange. A competing bid from CTBC Financial Holding Co. was recently dismissed by the FSC, solidifying Taishin's position. This merger is part of a broader trend of consolidation within Taiwan's financial sector.

Sectors

  • Financial Services
  • Investment Banking

Geography

  • Taiwan – The merger takes place within the Taiwanese financial sector, involving local companies and regulation by Taiwan's Financial Supervisory Commission.

Industry

  • Financial Services – The article concerns the merger of two financial holding companies in Taiwan, which are part of the financial services sector.
  • Investment Banking – The merger involves significant financial structuring and negotiation, akin to activities in the investment banking sector.

Financials

  • NT$8.43 trillion (US$253.78 billion) – The asset size of the new financial holding company post-merger, making it the fourth largest in Taiwan.
  • 0.672 Taishin common shares for 1 Shin Kong common share; 0.175 Taishin preferred shares for 1 Shin Kong preferred share – The stock swap ratio agreed upon for the merger between Taishin Financial and Shin Kong Financial.

Participants

NameRoleTypeDescription
Taishin Financial Holding Co.Bidding Company/BuyerCompanyThe financial holding company initiating the merger with Shin Kong Financial.
Shin Kong Financial Holding Co.Target CompanyCompanyThe company being acquired by Taishin Financial in the merger.
Financial Supervisory Commission (FSC)Regulatory BodyGovernmentThe top financial regulatory body in Taiwan responsible for approving the merger.
CTBC Financial Holding Co.Competing Bidding CompanyCompanyA company that launched a competing bid for Shin Kong Financial but was ultimately rejected.
TS Financial Holding Co., Ltd.New CompanyCompanyThe new entity to be formed from the merger of Taishin Financial and Shin Kong Financial.