CIMB Group Holdings Bhd. (CIMB), RHB Capital Bhd. and Malaysia Building Society Bhd. (MBS) agreed to scrap a three-way merger that would have created Malaysia’s largest banking group, citing current economic conditions.
“The decision to cease discussions was arrived at after a detailed review of potential synergies that could be realistically delivered, especially in the current economic environment,” Tengku Zafrul Tengku Abdul Aziz, acting Chief Executive Officer of CIMB Group, said in a joint e-mailed statement today.
Terms for the deal, announced in October, no longer make sense as the industry outlook deteriorates, people familiar with the matter said yesterday. The combination would have been Malaysia’s largest ever and was the biggest Asian merger transaction announced in the fourth quarter, data compiled by Bloomberg show.
Read the full story here