The combined entity will become South East Asia’s fourth largest commercial lender and Islamic bank
October 14, 2014: CIMB Group Holdings Berhad, RHB Capital Berhad and Malaysia Building Society Berhad announced on October 9, 2014 that an application has been made to the country’s central bank seeking approval for its proposed three-way merger.
If approved, the combined entity will become South East Asia’s fourth largest commercial lender and Islamic bank.
Tengku Dato’ Zafrul Tengku Abdul Aziz, acting group chief executive, CIMB Group said, “We are extremely pleased to have been able to reach this stage in the process. This exercise will cement CIMB Group’s position amongst the top banks in ASEAN and bring a host of value creation opportunities for all our stakeholders. We are excited that we can now move forward and work towards seeking the necessary approvals to effect this merger.”
Kellee Kam, managing director, RHB Capital Group, said: “I am glad that we have been able to come this far in our negotiations in such short a time. This merger is a natural step in our growth story, enabling us to become a regional financial powerhouse via the merged entity. The task ahead for us now is to ensure that we meet all the expectations of our stakeholders, thereby creating new opportunities for our employees, enhanced services and product offerings for our customers, and increasing returns and value for our shareholders.”
Dato’ Ahmad Zaini bin Othman, president and CEO MBSB said, “The strategic rationale for the merger and the subsequent creation of a mega-Islamic bank is clear and we’re focused on getting this to the finish line. This move charts another significant milestone in the history of MBSB since its inception and we are happy to be part of this corporate exercise.”
The deal is expected to be completed in mid-2015.