Sunday, July 23, 2017

Malaysian bank merger to create top general insurer

The merger of RHB Bank and AmBank in Malaysia will create a large entity that will become the country’s top general insurer, say analysts.

The two banks are in merger talks to form a US$9 billion group and claim the number one spot in general insurance, as well as in equity broking and asset management. It will also become the second-leading Islamic bank in Malaysia.

The discussions started after the Malaysian central bank approved the two banks’ merger negotiations.

In a joint statement, RHB and AmBank said the transaction will be carried out in an all-share deal. They have until August 30 to agree the deal.

In a statement Friday, AllianceDBS Research said if the merger goes through, the new entity will also become Malaysia’s fourth-largest bank with estimated assets of M$386 billion (US$90 billion) and Asean’s ninth-largest.

A source quoted by Reuters said RHB, which has a market value of about US$5 billion, will be the acquirer.

AmBank has a market capitalisation of US$3.66 billion.

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