KUALA LUMPUR, Jan 14: The chairman of CIMB Group Holdings Bhd on Wednesday said no decision has been made on a proposed three-way merger that would create Malaysia’s biggest bank, a day after people close to the deal told Reuters the merger was nearing collapse. The merger of CIMB, RHB Capital Bhd and Malaysia Building Society Bhd (MBSB) would have formed a banking group with assets of about $190 billion, eclipsing Malayan Banking Bhd and making it Southeast Asia’s fourth-biggest lender. ‘It has not been called off because there has been no announcement,’ Nazir Razak said at the launch of a report on corporate strategy in the Association of Southeast Asian Nations.
Nazir, brother of Malaysian Prime Minister Najib Razak, said the banks had been in ‘intense discussion’ over the past few weeks and that the plan had long been to have board meetings this month at which the banks would make a final decision.
Nazir said the banks were still evaluating synergies to be gained from the merger, based on many changing factors. The three banks will make an announcement on the merger ‘very soon’, he said.
Shares of CIMB were down 3.2 percent at the midday break, after the bank said late on Tuesday that merger talks were ongoing. Shares of RHB were 1.7 percent lower whereas those of MBSB were up 4.4 percent, versus a 0.3 percent decline in the benchmark index.
(AGENCIES)
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