AMMB Holdings Berhad (AmBank Group) and RHB Bank Berhad (RHB Banking Group) announced yesterday that approval from Bank Negara Malaysia (BNM) has been obtained for the two parties to commence discussions for a proposed merger between AmBank Group and RHB Banking Group.
Following the aforementioned approval by BNM, both parties 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 30 August 2017. It is envisaged that the transaction will effectively be an all shares merger.
“This new chapter that is opening in the AmBank Group’s history, comes at an opportune time for us as we have been moving closer to achieving our Top 4 goals. 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 Mohd Tahir, Group Chief Executive Officer, AmBank Group.
“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 Khairussaleh Ramli, Group Managing Director for RHB Banking Group.
AMMB and RHB Bank shares will resume trading on Bursa Malaysia today. – Bernama