Alpha RHEINTAL Bank AG, based in the Swiss canton of St. Gallen, said Dec. 5 that it had submitted a takeover offer for Volksbank AG, based in the St. Margrethen municipality of St. Gallen, to the latter's parent company, Austria-based Volksbank Vorarlberg e. Gen.
The acquisition will allow Alpha RHEINTAL Bank to strengthen its market position in its home canton and also reduce administrative and personnel costs. In the long term, the deal is expected to result in an increase in profitability as Alpha RHEINTAL Bank's customer base in St. Gallen expands, the bank said.
With due diligence at Volksbank AG completed, Alpha RHEINTAL Bank expects to start the acquisition process at the end of February 2018 and complete the deal by the end of June next year. The acquisition will then take retroactive effect from Jan. 1, 2018.