TAIPEI (Taiwan News) — Taiwan’s Financial Supervisory Commission approved SinoPac Holdings’ complete acquisition of King’s Town Bank on Thursday.

The transaction involves an 80% stock swap and 20% cash, with a total estimated value of about NT$59.9 billion (US$2 billion). The merger is expected to be finalized by the end of 2026, according to CNA.

Upon completion, SinoPac Holdings’ total assets will rise to NT$3.5 trillion. Its position among Taiwan’s financial holding companies will rise from 14th to 13th place.

The domestic branch network under Bank SinoPac will increase from 125 to 191 branches. This will raise the bank’s branch ranking from 12th to second nationwide, just behind Taiwan Cooperative Bank.

SinoPac Bank, established in 2006 through the merger of two subsidiaries under SinoPac Holdings, currently operates 125 branches across Taiwan. KTB, originally founded in southern Taiwan, complements SinoPac Holdings with minimal overlap in branch locations.

Chair Stanley Chu (朱士廷) emphasized this complementary dynamic, noting that both banks serve small and medium enterprises, share similar corporate cultures, and possess local service expertise. KTB stated that joining SinoPac Holdings will enable KTB to offer customers a broader and more diverse range of financial products and services.

Both SinoPac Holdings and KTB approved the share swap plan during extraordinary general meetings held in March. Once the merger is finalized, KTB will become a wholly owned subsidiary of SinoPac Holdings.

Details regarding the effective date of the merger, including business preparation and system integration, will be determined by the companies. Typically, the acquired bank will be delisted on the effective merger date.

SinoPac has committed to retaining all approximately 700 employees of KTB.