Jun 27, 2011

CIMB and Maybank no longer pursuing RHB cap

Malaysia's largest two banks, Malayan Banking Bhd and  CIMB Group Holdings Bhd, have dropped separate plans to acquire smaller rival  RHB Capital Bhd, dashing the nation's hope of creating Southeast Asia's most valuable lender. The two banks confirmed a newspaper report that merger talks were off, in light of Abu Dhabi Commercial Bank setting a high valuation bar when it sold its 25% stake in RHB to Aabar Investment last
week. CIMB Chief Executive Nazir Razak said, "Based on our various discussions and our assessment of the present expectations of key stakeholders, we do not believe that we will
be able to arrive at a value creating merger.” (Reuters)