Taishin, Shin Kong finalize merger

FRIENDLY ACQUISITION:
TS Financial, the new entity, has combined assets of NT$8.3 trillion, more than 10 million clients, over 1 million shareholders and 32,000 employees

• By Crystal Hsu / Staff reporter

Taishin Financial Holding Co (台新金控) and Shin Kong Financial Holding Co (新光金控) yesterday finalized their long-anticipated merger, creating TS Financial Holding Co (台新新光金控), whose combined assets make it the fourth-largest financial holding company in Taiwan.

The new entity, with NT$8.3 trillion (US$282.3 billion) in assets, more than 10 million clients and over 1 million shareholders, aims to become a globally competitive financial group, chairman Thomas Wu (吳東亮) said at a celebration event in Taipei.

“This merger is not just about scale — it is about creating a new growth engine for Taiwan’s financial sector,” Wu said, adding that TS Financial would pursue a “multi-engine” model integrating banking, insurance, asset management and securities to drive balanced development.

Photo: CNA

While the legal merger takes effect immediately, operational integration across subsidiaries is expected to take up to a year, as the group works toward building a unified platform.

The merger marks Taiwan’s largest-ever friendly acquisition in the financial sector by transaction value, and signals a broader shift toward consolidation and scale.

TS Financial now controls 557 branches, 5,000 ATMs and a workforce of 32,000, and operates the most widely used digital banking platform in the nation.

Domestically, Wu said that the company plans to consolidate Taishin International Bank Co (台新銀行) and Shin Kong Commercial Bank Co (新光銀行) into the country’s largest retail banking network, in terms of the number of branches and digital user base.

In the insurance field, 60-year-old Shin Kong Life Insurance Co (新光人壽) is to remain a core subsidiary, with plans to bolster its capital strength and long-term policyholder protection, Wu said.

International expansion, particularly in Asia, is a key goal, Wu said, adding that the group is exploring cross-border opportunities to align with global companies increasingly seeking partnerships with Taiwan.

Citing his role as chairman of the Chinese National Association of Industry and Commerce, Wu said: “Now is the best time for Taiwanese firms to step out and compete internationally. Taiwan’s financial sector must achieve sufficient scale to serve as a strong and reliable backing for our businesses abroad.”

The integration process has already begun. On the asset management front, Taishin Securities Investment Trust Co (台新投信) yesterday approved a share swap to absorb Shin Kong Investment Trust Co (新光投信), marking the first subsidiary consolidation.

Taishin Trust plans to issue 53.37 million new shares to its parent company in exchange for Shin Kong Trust shares, at a ratio of 1.3342 Taishin shares for each Shin Kong share — pending regulatory approval.

Despite optimism about long-term synergies, investors took a cautious stance. Shares of TS Financial dropped 6.3 percent to NT$16.3 yesterday on heavy volume, as the market digested the near-term integration challenges and restructuring costs.

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