The Business Times

Malaysia's CIMB, RHB, MBSB reach merger deal: source

Published Thu, Oct 9, 2014 · 12:55 AM

[SINGAPORE] Malaysia's CIMB Group, RHB Capital Bhd and Malaysia Building Society Bhd (MBSB) have agreed on a merger deal that will create the country's biggest banking group, a source with direct knowledge of the matter said.

The deal will involve a share swap between Malaysia's second-biggest lender CIMB and its fourth-largest bank RHB, the source said, adding that an announcement is expected later on Thursday.

The deal will still require approval from Bank Negara Malaysia, the central bank, the source said, who asked not to be identified ahead of the formal announcement.

A combination of the three lenders would give birth to a banking group with assets totalling around US$190 billion, surpassing the country's largest lender Malayan Banking Bhd (Maybank) and making it Southeast Asia's fourth-biggest lender.

Shares of the three banks were suspended on Thursday pending an announcement. - Reuters

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