Three Malaysian banks CIMB, RHB, MBSB’s joint proposal to merge to central bank BNM.
Malaysian banks CIMB Group Holdings, RHB Capital and Malaysia Building Society Bhd (MBSB) have agreed on a deal to merge, forming the country’s biggest bank and Southeast Asia’s fourth-largest lender, as per reports on October 9, 2014. The proposal for the merger has been jointly submitted for approval by the three to Bank Negara Malaysia (BNM), the country’s central bank.
In July 2014, CIMB, RHB Capital and MBSB had announced the go-ahead they had received from BNM to initiate talks about the merger. Following this, the three banks entered into a 90-day exclusivity agreement to negotiate the merger. As per the deal, the merger involves RHB to buy CIMB’s entire banking business through a share swap deal.
The new proposed group post merger would have an estimate of assets worth $194 billion and a 23 per cent market share of domestic loans against Maybank’s 18 per cent (current top bank in Malaysia).
The three parties had met on October 8, 2014 to finalize and submit the business and integration plans, sale terms, and the purchase agreement at the end the 90-day exclusivity period that began after BNM’s previous approval to discuss terms.
Photo Credits: Scmp.com
