Desjardins Credit Union Inc. is the successful bidder for the Province of Ontario Savings Office, and has committed to invest $170 million into the banking unit, Ontaro Finance Minister Janet Ecker announced today.
Desjardins will be the new owner effective April 1. Desjardins Credit will pay approximately $50 million for POSO and invest an additional $120 million into expanded services, training and improvements.
“Desjardins Group’s investments will go towards expanding customer products and services, a new training and skills development program for employees and ensuring a cash reserve,” said Jean-Guy Langelier, chairman of the board, Desjardins Credit Union Inc.
POSO has 28 offices across the province. With assest of $2.3 billion, its mission is to take deposits to cover the Ontario government’s financial requirements
For three years following the sale, Desjardins Credit Union has committed to:
- maintaining a physical presence in all communities currently served by POSO;
- maintaining or increasing POSO’s hours of operation and service/product offerings; and
- maintaining or increasing staffing levels in branches.
In addition, the buyer will maintain all offices in Armstrong, Pickle Lake, Killarney, Gogama and Virginiatown indefinitely.
The transaction must be approved by the Financial Services Commission of Ontario and the Deposit Insurance Corp. of Ontario.