CIMB, RHB and MBSB agreed to merge

Finally the deal is sealed!

Malaysian banks CIMB Group, RHB Capital Bhd and MBSB have agreed on a deal to merge to form the country's biggest bank and Southeast Asia's fourth-largest lender, according to a Reuters report.

SINGAPORE: Three Malaysian financial institutions - CIMB Group, RHB Capital Bhd and Malaysia Building Society Bhd (MBSB) - have agreed on a deal to merge, according to a source quoted in Reuters on Thursday (Oct 9). The merger deal will create the country's biggest bank.

According to the Reuters report, shares of the three banks have been suspended and an announcement is expected later on Thursday. The deal will involve a share swap between CIMB, Malaysia's second largest bank, and RHB, said the source, who was not identified in the report.

However, the source said the deal will still need the go-ahead from Malaysia's central bank, Bank Negara Malaysia.

In July, the three banks announced approval from Bank Negara to commence discussions on the merger. CIMB, RHB Capital and MBSB then entered into a 90-day exclusivity agreement to negotiate the merger of the three entities and "the creation of a mega Islamic bank".

The new proposed group would stand out as the largest bank in Malaysia and the fourth-largest lender in Southeast Asia, with total assets of US$194 billion and a 23 per cent market share of domestic loans versus current Malaysia top bank Maybank's 18 per cent.

http://www.channelnewsasia.com/news/business/international/three-malaysian-banks/1405226.html