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[HOT] PNB says it’s ‘not a Ponzi scheme’ while AMMB denies 1MDB a factor in failed merger talks

KUALA LUMPUR: It is rare for The Edge Malaysia to feature two cover stories at the same time in one week, like it has done…


[HOT] Deal Called Off? AMMB & RHB Bank to Scrap Merger

RHB AMMB 2

KUALA LUMPUR: AMMB Holdings Bhd and RHB Bank Bhd called off their proposed merger due to valuations issues, sources said. Earlier, Bloomberg reported the two Malaysian lenders had difficulty reaching agreement on terms, one of the people said, asking not to be identified because the information is private Companies could announce as soon as today that they’ve decided to end talks about a combination. Shares of both lenders were suspended from trading in Kuala Lumpur on Tuesday. AMMB’s largest shareholder is Australia & New Zealand Banking Group, which has a 24% stake,Read More


Proposed merger between RHB and AMMB to benefit AmBank more

KUALA LUMPUR: The proposed merger between RHB Bank Bhd and AMMB Holdings Bhd is expected to benefit AmBank group more than RHB,says  the latest Moody’s Credit Outlook. In a research note yesterday, the rating agency said the proposed merger was credit positive for AmBank (M) Bhd (Baa1/Baa1 stable, baa3), AmBank Group’s main operating bank, because […]


Merger to create stronger group but analysts neutral

  KUCHING: The proposed merger between RHB Bank Bhd (RHB) and AMMB Holdings Bhd (AMMB) will create a stronger banking group, becoming Malaysia’s fourth largest bank and Asean’s ninth largest by assets. In a corporate update report by the research arm of MIDF Amanah Investment Bank Bhd (MIDF Research), the merger would be an all-shares […]


RHB-AMMB merger may affect consumers

KUCHING: Consumers might be inversely affected by the upcoming merger between RHB Bank Bhd (RHB) and AMMB Holdings Bhd (AMMB) which is currently undergoing talks. While the merger would be beneficial to the financial sector, Danny Wong, chief executive officer and director of Areca Capital Sdn Bhd – an investment management firm – said it […]


Doubts over merger drag on RHB, AmBank stocks

KUALA LUMPUR, June 2 — Shares of RHB Bank and AMMB Holdings (AmBank) fell on Friday on concerns that a potential merger between the two lenders in Malaysia’s biggest ever banking deal would create little value for investors. RHB and AmBank…


RHB-AmBank to take No. 1 spot in asset management, insurance, broking

KUALA LUMPUR, June 2 — The RHB Bank Bhd (RHB) and AMMB Holdings Bhd (AmBank) merger would allow the enlarged entity to claim the number one spot for asset management, general insurance and equity broking, and the number two spot for Islamic…


RHB-AmBank merger talks boost positive sentiment

KUALA LUMPUR: RHB Bank Bhd (RHB) and AMMB Holdings Bhd's (AmBank) proposed merger to create one of Malaysia's biggest lenders has signalled positive development in Malaysia as well as the Asean region.

Ushering an epoch of consolidation in the banking industry, IQI Global Chief Economist, Shan Saeed, said the future direction of the banking group was now subject to the enlarged entities' priorities.

“Going forward, I see more and more banks will be going into the consolidation phase, and there would be fewer and fewer players providing financial services to clients,” he told Bernama when asked to comment on the proposed merger.

“It's a game of giants which is healthy for the market due to solid capital adequacy ratio and meeting the Basel 111 requirement,” he added.

RHB and AmBank in a joint statement on Thursday said they had received the nod from the Malaysian central bank to commence the merger negotiations.

The transaction is expected to be an all-share deal and the two banks have until Aug 30 to exclusively discuss a deal.

Shan said the merger would reinforce RHB's ranking as the fourth largest Malaysian bank by assets behind Maybank, CIMB Group Holdings and Public Bank. AmBank is currently the country's sixth biggest bank.

“The merger is part of a strategic intent of RHB to enhance market share.

“The merger of these two banks will be leading to consolidation and building synergies. Both are top banks, this will create economies of scale and improve efficiency with the amalgamation.

“The banking activity will continue to grow in the near future,” added Shan. — Bernama

Bursa Malaysia seems to laud the news, with both RHB and AmBank shares climbed early Friday as investors were positive on the proposed merger of the banks.

RHB and AmBank were up 10 sen each at opening to RM5.49 and RM5.31, respectively, but mild profit-taking at mid-day retraced RHB to RM5.27 (- 12 sen) while AmBank eased to RM5.15 (- 6 sen).

Meanwhile, the Finance index surged 100.15 points or 0.60 per cent at mid-day to 16,670.92, while the benchmark FTSE Bursa Malaysia KLCI was 9.65 points better (+0.55 per cent) at 1,772.76 from yesterday's close of 1,763.37.