SIGMA INVESTMENT Management Systems (SIMS), one of the country's largest fund managers, yesterday said it intended to merge with Manufacturers Merchant Bank (MMB), the island's fourth biggest trader in foreign exchange. Mechala Group boss Joseph M. Matalon said it would merge its Sigma subsidiary, which includes the popular Sigma Unit Trust company, with the previously independent MMB as part of the effort to compete more efficiently locally and overseas.
The new entity, to be called Manufacturers Sigma Merchant Bank, will be headed by Mechala's chairman, Joseph M. Matalon, with MMB's incumbent president and chief executive officer, Peter Melhado, as chief executive officer.
The recently restructured Mechala interests will control 57 per cent of the new company. Manufacturers' interest, including its former owners, O.K. Melhado and Cliff Cameron, will control 43 per cent. The combined bank will have more than $500 million in capital and manage in excess of $20 billion.
The move, which has not yet been given the green light by the Bank of Jamaica or other authorities charged with regulating the sector, signalled an aggressive new round of consolidation in the sector. BoJ Governor Derick Latibeaudiere was unavailable to comment yesterday.
