The Financial Services Commission of Ontario (FSCO) has approved the proposed $3.5 billion merger of Niagara Credit Union and Hepcoe Credit Union.

The merger will create the largest credit union in Ontario and the third largest in Canada.

FSCO approval clears the way for votes on the merger by members and shareholders of the two credit unions in February. Following the vote, the merger must also be approved by the Ontario Minister of Finance and the Federal Competition Bureau.

FSCO approved Meridian Credit Union as the name for the new credit union and its head office location in St. Catharines. Corporate offices will also be maintained in downtown Toronto.

“FSCO is responsible for analyzing and approving the integrity and viability of the business and financial case for the merger. Its approval confirms that both of our credit unions will be significantly stronger as a result of this merger,” said Sean Jackson, president and CEO of Niagara Credit Union, and CEO designate of the new credit union.

“In addition to making the business case, we were also required to explain how this would benefit members in both credit unions,” Jackson said.

The proposed merger will create a credit union with 43 branches, 65 ATMs and more than 180,000 Members. If approved, the merger is expected to close April 1, 2005.

“Our goal is to reinvent neighbourhood banking by delivering an even higher level of personalized service to our members. This merger will provide us with the resources to do it,” said Ian McLeod, CEO of Hepcoe Credit Union.

“No branches will be closed and there will be no layoffs as a result of this merger. Every branch employee will be there to continue to serve our Members, and every corporate office employee will be guaranteed a job offer,” said Don Ariss, chairman of the Hepcoe Credit Union board of directors.

Hepcoe approached the Niagara about the possibility of merging last April. Since then, the two credit unions have undertaken an extensive due diligence process to ensure that the merger is in the best interests of their members.

Niagara Credit Union is Ontario’s second largest credit union with 100,000 members and over $2 billion in assets under administration.

Hepcoe Credit Union is Ontario’s third largest credit union with $1.5 billion in assets under administration.