Heartland Weighs Impact of RBNZ Review on Proposed TSB Merger

Heartland Group Holdings Ltd., the parent company of Heartland Bank, is weighing the impact of a Reserve Bank of New Zealand review on its proposed merger with TSB Bank. The review was initiated by a Section 95 Notice issued to TSB, which requires an independent assessment by Deloitte New Zealand of the bank's liquidity, capital adequacy, and regulatory reporting requirements.

The review is specific to TSB, but Heartland Group Holdings remains in discussions with the central bank regarding its proposed acquisition of all TSB shares. Chief executive Andrew Dixson stated that Heartland will carefully consider the findings of the review and any implications for the planned transaction.

Despite the uncertainty introduced by the review, Heartland emphasized the strategic appeal of creating a larger New Zealand challenger bank through the merger. The company highlighted that extensive due diligence was conducted before signing the merger implementation agreement with Toi Foundation, which owns TSB Bank.

The special shareholder meeting scheduled for 30 September 2026 will proceed as planned, but shareholders retain the ability to change their votes or exercise minority buy-out rights if they oppose the transaction. Heartland Group Holdings has stated that it will not speculate on the outcome of the review and will provide updates as findings emerge.