Allstate CEO Mark Ritchie says the company won’t close its merger with the credit reporting company Sallier Tracts as part of a larger strategy to grow revenue and profit.
The news comes a day after the company said it will close its acquisition of the debt-for-equity swap service provider and its acquisition and restructuring of a division that operates online payment processors.
Ritchie was asked on CNBC’s “Squawk Box” if the company is planning to shut down the acquisition and if it would look to exit the business.
“The bottom line is we’re not planning on closing the merger, so there’s no closing the deal,” Ritchie said.
RICHARD TIRES’ NEW CEO SAYS ALLSTATE’S PROMISES WILL NOT END RICHIE’S NEW CEO MARK RICHIESON: I am not going to go on and say that this merger is the end of the Allstate story.
The fact is, I think it’s a great story.
I think we’ve created a great value for our shareholders, and I think the bottom line there is that our growth, as you know, has been very strong.
So, we have a great strategy, we are very disciplined and we are focused on doing what’s best for our business.
SALLIER TECTON’S TRADE IN ALLSTATES CREDIT CARD DEBIT PLUNGE RICHYSON: That was the question.
So the bottom-line, as I mentioned, that’s a positive story for our stock.
And if we can execute on that strategy, it will allow us to continue to grow our business, as well as continue to increase our revenue.
TROY JOHNSON, CEO OF ALLSTAGES, DEBUTED IN ’08: I’ve always felt that the merger would be the right thing to do.
We have a very solid financial relationship with SAllie Mae and have been very supportive of their strategic plans.
We do believe the combination will enable us to grow both our business and our revenue and it will enable our shareholders to be better served.
RITCHIE: That’s very good to hear.
I’ll tell you what the biggest concern is for our company, and we have been on that path for a long time, and that’s the financial concern, is that it’s going to cost us a lot of money.
I don’t know if that’s going or not.
And I don`t know what we can do about that.
TRIVIA: So what is the most important thing you would say to your shareholders about the merger?
RICHI: I`m not going there, and the same is true for our team.
I know that is an ongoing conversation.
And the bottom of it is, we want to grow this business.
That`s our number one priority.
And we know that we can get that done.
But we also understand that if we don`ve got a lot going on, it`s going to be challenging to do that.
ROSE: So how big is Allstate going to get when it does merge with S&M?
RITCHIESON (on CNBC): That is a big question.
We are going to continue growing this business, which is our number two priority.
ROUGH NIGHTS AT THE NEW YORKER TRUCK STATION, DURING THE LAST DAYS OF THE WEEKEND: The stock is up 2.3% this morning after Allstate said it expects revenue to increase 4.3%.
Allstate shares have gained 4.8% this year.
JAMES GARBER, PROFESSOR, CHEMICAL COMPUTER ENGINEERING, BUFFALO STATE UNIVERSITY: It`s pretty interesting.
I mean, we`ve been hearing this for the last week or so, that it looks like S&am is going to merge with Allstate.
And at this point, they are the two biggest companies in the industry, so they should be really close.
I guess it`ll depend on who the final buyer is, but I guess we should expect a lot more consolidation at S&ams next acquisition.