The planned merger between RHB Bank Bhd and AMMB Holdings Bhd (AmBank) could result in Malaysia’s largest general insurance, asset management, and equity broking firm, as well as the second-largest Islamic bank, analysts say.
According to AllianceDBS Research, if the transaction is successful, the resulting entity will also be the fourth-largest bank in Malaysia and ninth-largest in ASEAN, with MYR386 billion (US$90.1 billion) in assets.
The merger plan outlines that it will be an all-share deal, where RHB will end up acquiring AmBank, and that both parties already have obtained permission from Bank Negara Malaysia, reports
Malay Mail. The two banks have been given up to August 30 to work out a deal, subject to renewal if necessary.
However, AllianceDBS added that acceptance by other key stakeholders remains the highest hurdle to clear. Disagreements over price and shareholders’ approvals remain the most likely deal-breakers for many proposed mergers and acquisitions.
In order to approve the merger, both firms will have to hold extraordinary general meetings, in which AmBank must gain 75% of votes in favour of the transaction, while RHB must register a simple majority, or 50% plus one.
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