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Malaysia: Mega bank merger collapses

By  |  January 13, 2015

The merger of three major Malaysian banks, which would have created the fourth-largest bank in Southeast Asia, collapsed Tuesday. They had been given clearance to proceed back in July 2014.

CIMB Group Holdings, RHB Capital and Malaysia Building Society were to form the largest Malaysian bank with assets of over $180 billion. The banks announced the merger in October, but since then the economy of Malaysia has fallen on hard times and the stocks of all three banks plummeted.

CIMB stock fell 20 percent over the last three months with RHB and Malaysia Building Society falling 10 percent and 7 percent respectively.

In response to the merger falling apart, an RHB spokesperson stated that there has been “no further development in relation to the merger at this juncture.”

Full Content: The Wall Street Journal

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