RHB, AmBank to ditch merger plan

KUALA LUMPUR: Malaysia's RHB Bank and AMMB Holdings (AmBank) are likely to abandon their planned merger, three sources familiar with the matter told Reuters on Tuesday.

The banks could not agree on valuation because of contingent liabilities, one of the sources said.

The sources did not want to be named because the talks were confidential.

AmBank declined to comment and said a statement would be issued shortly. RHB did not immediately respond to request for comment.

The companies had said in June that they were starting merger talks after receiving the Malaysian central bank's blessing to begin negotiations.

RHB and AmBank had both requested for that trading in their shares be halted on Tuesday, pending material announcements.