KUALA LUMPUR: RHB Bank Bhd and AMMB Holdings Bhd have obtained Bank Negara’s approval to commence discussions for a proposed merger between RHB Banking Group and AmBank Group.
In a statement released by the two banks today, both parties said that following the regulator's nod, the two have entered into an exclusivity agreement to negotiate and finalise terms and conditions of the proposed merger for submission to the relevant regulatory authorities.
“The exclusivity agreement will expire on August 30, 2017. It is envisaged that the transaction will effectively be an all shares merger," the RHB statement said.
“We are confident that if the proposed merger takes place, it will create greater synergy for the enlarged banking group, benefiting our shareholders, customers, employees and all other stakeholders. A merger of RHB Banking Group and AmBank Group will create a stronger fourth largest banking group, creating scale and market leadership across key business segments,” said RHB Banking Group group managing director Datuk Khairussaleh Ramli.
Similarly, AmBank Group's group chief executive officer Datuk Sulaiman Mohd Tahir said the merger would mark a new chapter for the AmBank Group and comes at a transformative time for the bank.
“I am positive that the proposed merger with RHB Banking Group will create a stronger business and financial presence. Our combined strength in key business segments particularly in retail and investment banking will bode well for us as we move forward to achieve our goal of becoming a formidable banking group,” said Sulaiman.
RHB Bank and AMMB shares will resume trading on Bursa Malaysia on 2 June 2017.
If the deal materialises, then the merged entity would end up becoming the country’s fourth-largest bank by asset size.