Potential hurdles for M'sia megabank deal
Hong Kong
MALAYSIA'S three-way US$26 billion bank deal is far from done. A merger of CIMB Group with two smaller rivals will create the country's largest bank by assets. Yet, current share prices point to hurdles, including potential opposition from an Abu Dhabi sovereign investor or even a counterbid. A Malaysian pension fund could seal the deal, but only if it is allowed to vote.
Under terms submitted for approval to the central bank, RHB Capital will issue shares to acquire the much larger CIMB. The latter's privately-held Islamic banking subsidiary will also acquire another listed bank, Malaysian Building Society, for new shares or cash. The two deals will happen simultaneously but are not dependent on each other.
BT is now on Telegram!
For daily updates on weekdays and specially selected content for the weekend. Subscribe to t.me/BizTimes
Banking & Finance
ADB agrees to US$5 billion funds replenishment with donors
Dollar drops as employers add fewer jobs than expected in April
HSBC has no plans to dispose of further businesses, chairman says
JPMorgan unveils IndexGPT in next Wall Street bid to tap AI boom
Morgan Stanley, Frasers settle UK lawsuit over US$1 billion margin call
Danske’s net income rises 9% helped by higher interest rates