What is this all about?
Desjardins Credit Union approached us last fall to bring their 50,000 Members, employees, and branch network to us under the Meridian banner. We have conducted an exhaustive due diligence review of Desjardins Credit Union operations. As a result of this review, Meridian’s Board of Directors is recommending that our Members approve this amalgamation.
This is being called an amalgamation. What does that mean?
We are legally required to call this an amalgamation. If this is approved by our respective Memberships:
- No Meridian employee will lose his or her job;
- Desjardins Credit Union will not have any say in Meridian’s operations;
- The structure and election of the Meridian Board of Directors will not change;
- No Desjardins Credit Union director will become a director on the Meridian Board unless they are elected by Meridian’s Members;
- The number of Meridian branches in the communities we serve will remain the same or increase; and
- Desjardins Credit Union will cease operations under that name in Ontario.
What is the relationship between Desjardins Credit Union and Desjardins Group?
Desjardins Credit Union was created in 2003 to take over the Province of Ontario Savings Office. It was funded by Desjardins Group, the largest caisse populaire in Quebec and seventh largest financial institution in Canada.
Desjardins Credit Union is an independent Ontario cooperative with its own management and Board of Directors. This amalgamation involves only Desjardins Credit Union.
What are the benefits to Meridian and to me as a Member?
There are a number of benefits. Among them:
- Our analysis shows that each of the Desjardins Credit Union branches will be profitable, or in the worst case, break even, from the minute they become part of Meridian.
- The cost of delivering financial products and services will be spread over 263,000 Members instead of the 213, 295 Members Meridian now has. As a result, we will be able to contain current costs and develop new products and services more cost-effectively.
- Â With the higher profile and additional resources, this will bring, we will be able to explain the advantages of this cooperative approach to delivering financial services to more Ontarians and attract new Members. We will be in an even better position to contain costs, introduce new products and improve service for you, our Members.
Why is Desjardins Credit Union doing this?
In 2008, Desjardins Credit Union began a restructuring plan with the twin goals of:
- Improving financial performance; and
- Identifying long-term strategic options to best serve the interests of its employees, Members and stakeholders.
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With the first part of the restructuring plan complete, Desjardins Credit Union began to review its long-term strategic options. Following that review, its Board of Directors came the conclusion that bringing its operations under the Meridian banner was in the best interests of its employees, Members and stakeholders.
Do our Members need to vote on this?
Yes. Both Meridian and Desjardins Credit Union are owned by their Members.
Under Meridian’s corporate bylaws, each of our Members can cast a vote on this initiative at their branch or online. Meridian’s Class A shareholders must also vote in favour of this initiative, based on the number of shares they own.
Desjardins Credit Union conducts its vote somewhat differently. Each branch elects delegates who will then come together to vote on this initiative.
What happens next?
Meridian Members will be able to vote in their branch or online between March 28 and April 11.
In addition to casting their votes as a Meridian Member, Class A shareholders will receive a Management Information Circular and a proxy form in the mail in March. Class A shareholders must complete and return their proxy to be received by 8 a.m. on April 18 at the office of our Proxy Agent, PricewaterhouseCoopers LLP. Class A shareholders can also attend the Special General Meeting on April 19 to vote their shares.
A Special General Meeting to vote on this initiative will be held immediately following the Annual General Meeting on April 19 at The Scotiabank Convention Centre in Niagara Falls, Ontario.
Desjardins Credit Union delegates will meet on April 27 to vote on this initiative.
If approved, Desjardins Credit Union will join Meridian on June 1. The combined credit union will continue under the name Meridian.
We anticipate that system conversion and other work to fully integrate Desjardins Credit Union with Meridian will be completed by summer 2012.
If the proposed amalgamation with Desjardins Credit Union is approved by our Memberships, what will the name of the credit union be going forward?
If approved, Desjardins Credit Union will join Meridian on June 1, 2011. The combined credit union will continue under the name Meridian.
