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Malaysia: Clearance given to create nation’s largest bank

By  |  July 10, 2014

Malaysia’s second largest bank is pursuing the top spot and announced Thursday that it has been given regulatory approval to proceed with a merger that would achieve its goal.

Reports say CIMB Group Holdings has been given approval by Malaysia’s central bank, Bank Negara Malaysia, to proceed with merger talks to acquire RHB Capital and Malaysia Building Society, two smaller banks that, when the three are combined, would create the nation’s largest lender.

Sources say details of the merger remain unclear, but CIMB will now begin to discuss a possible deal. Reports say the banks will now proceed with a 90-day exclusivity deal to negotiate a merger.

According to reports, the deal proceeds plans to integrate Southeast Asian economies, which is set to begin by the end of next year, as the region looks to strengthen its position in the global market.

Full content: Reuters

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