AMMB, RHB Bank cancel merger plan, unable to agree on terms - Business News

KUALA LUMPUR: AMMB Holdings Bhd and RHB Bank Bhd had on Tuesday scrapped their proposed merger as they were not able to agree on mutually acceptable terms and conditions for the corporate exercise. Both banks will resume trading on Wednesday. In a joint statement issued, they said that after much deliberation and negotiations during the three month period, they could not reach an agreement.“Both banking group had mutually agreed to end the negotiations and not proceed with the proposed merger.“In this respect, the exclusivity period pursuant to the exclusivity agreement between the parties dated June 1, 2017 will lapse with immediate effect,” they said.RHB Banking Group managing director Datuk Khairussaleh Ramli said following the decision, “ we will now continue to execute our initiatives under our current strategy to create value for our shareholders, and focus on delivering superior customer experience”.Meanwhile, AmBank Group CEO Datuk Sulaiman Mohd Tahir said given the heritage and strength of the group, “we are confident of moving forward despite the fact that the merger did not materialise”.Sulaiman said the group’s strategy and direction remains the same as it aspired to deliver on its Group Top 4 growth aspirations.“We remain focused on our FY2018 business plan in line with the Group’s Top 4 strategy as we work towards running the bank better and changing the bank while delivering optimal returns for our shareholders,” he said.It was earlier reported that both the lenders would submit to the authorities on whether or not to proceed with their merger by the end of this month.The proposed merger, if it happened, would create the country’s fourth-largest banking group. Both banks had previously said that they were exploring an all-share swap deal for the merger.Based on the figures as at the end of last year, the combined assets of RHB-AMMB stood at RM368.3bil, trailing behind Public Bank Bhd ’s RM389.73bil.RHB is the fourth-largest lender, while AMMB is the sixth-largest based on asset size.

Source:The Star

August 22, 2017 10:31 UTC