TAIPEI (Taiwan News) — Taishin Financial Holding Co. said it would raise its offer by 25% to acquire Shin Kong Financial Holding Co. in a deal that could become Taiwan's largest financial services merger. 

Taishin’s new offer as of Wednesday (Sept. 11) stands at NT$243 billion (US$7.6 billion) to take over Shin Kong, Taiwan’s fifth-largest financial conglomerate. Taishin said it will offer 0.672 common shares, an increase from 0.6022, and 0.175 preferred shares, per Shin Kong share for a 100% stake in Shin Kong. 

CTBC Financial Holding Co. also seeks to acquire Shin Kong, which would see it become Taiwan's largest financial firm, per Reuters. It offered Shin Kong about NT$132 billion (US$4.1 billion) in cash and stocks for a 51% stake in the company.

If CTBC’s offer is accepted, it will become Taiwan's largest financial firm, with an estimated combined assets of NT$13.46 trillion (US$418 billion).  

Taishin’s updated stock swap ratio means an acquisition price of NT$14.18 (44 cents) per share, up about 25% from the previous swap ratio. This is still slightly below but closer to CTBC’s price of NT$14.55, but CTBC can raise its offer again. 

Despite competition with CTBC, Taishin said it is confident it can gain shareholder approval to take over Shin Kong. Taishin is reportedly Shin Kong’s preferred partner in the merger, as the two founders are brothers from Taiwan’s wealthy Wu family. 

A Taishin-Shin Kong merger would make the company Taiwan’s fourth-largest financial firm, with an estimated NT$8.29 trillion in combined assets. The companies said they hope the merger can allow the company to become more competitive on a global scale. 

Analysts said mergers could ease competition in Taiwan’s crowded financial market and create lenders that could compete regionally. The Financial Supervisory Commission and Fair Trade Commission must clear whoever wins the acquisition.