Malaysia: Top bank to emerge from $22.3B three-way merger

Three banks in Malaysia are on path to merge into the nation’s largest lender through a $22.3 billion deal, say reports.

RHB Capital is planning to acquire its larger rival CIMB, the nation’s second-largest bank. Following the deal, the merged bank will then combine with Malaysia Building Society, according to reports. The new lender will be deemed a “mega-Islamic banks,” the companies said in a statement.

According to reports, the consolidation of Malaysia’s banking industry is a response to the Association of Southeast Asian Nations moving forward with its plans to create an integrated, streamlined economy of its members, which includes Malaysia. Experts say the new bank will allow Malaysia to more adequately handle the increase in foreign investment and operations within the nation.

The banks say they have already applied for approval for the transaction with the central bank. The deal remains subject to approval from competition authorities and shareholders, reports say.

Full content: Bloomberg

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