Cathay Life’s move on Bank of Nova Scotia’s Malaysian unit failsApril 13 2018 by InsuranceAsia News Staff
Cathay Life Insurance’s planned acquisition of Bank of Nova Scotia’s Malaysia unit (known locally as BNSB) has fallen through.
In May last year, Cathay Financial announced it would pay US$255 million to acquire the unit of the Canada-based bank through Cathay United Bank and Cathay Life Insurance, two wholly-owned units of the Taiwanese financial conglomerate.
Based on the agreement reached at the time, Cathay United Bank was to own a 51% stake in BNSB and become the first Taiwanese bank to have a subsidiary in Malaysia. Cathay Life would hold the remaining 49%.
Cathay Financial did not give details on exactly why the acquisition fell apart because the parties were bound by a nondisclosure agreement, it said, but Cathay Financial vice-president Teng Chung-yi said the acquisition price was not the problem.
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The cancellation of the deal came after the Chinese insurer failed to secure regulatory approval.