Malaysia's CIMB says bank merger talks continuing, board meeting Wednesday

[KUALA LUMPUR] Malaysia's CIMB Group Holdings Bhd said on Tuesday that talks on a proposed three-way bank merger were continuing and the board will meet on Wednesday to discuss the deal.

The proposed US$20 billion mega bank merger of CIMB, RHB Capital Bhd and Malaysia Building Society Bhd would create the country's biggest bank by assets.

"Should there be any material development on the proposed merger which warrants disclosure, the appropriate announcement will be made on Bursa Securities accordingly," CIMB said in a local stock exchange filing.

Sources told Reuters earlier on Tuesday that Malaysia would scrap the deal after CIMB and RHB Capital failed to agree terms.

REUTERS