CIMB and Maybank in talks to buy RHB

From Reuters, Malaysia's top two banks, Maybank and CIMB Group, are beginning rival talks to buy RHB Capital, which could lead to creating Southeast Asia's largest banking group.

Analysts said Maybank and CIMB's move on RHB, which has a market value of about $6.7 billion, marks the start of a "race for banking consolidation" in Malaysia, where stiff competition continues to shrink net interest margins -- or what a bank makes on loans and pays out on deposits.

"To both of them, RHB capital is the way forward," said Danny Wong, a fund manager with Acera Capital that owns shares in all three banks.

"For CIMB, taking over RHB would be a good way to strengthen its commercial banking side. It wants more momentum in that area since it's strong the investment side.

"In the case of Maybank, if the acquisition involves taking over RHB's brokerage arm and securities, it will boost its investment banking side."

A takeover of RHB by Maybank would make the biggest banking group in Southeast Asia by market value, exceeding Singapore's DBS. A CIMB-RHB combination would rank just below DBS.

View full story here.

Also Read

ESR-LOGOS secures $225m and JPY15.5b sustainability-linked term loans

Singapore leads SEA in FinTech funding

Since you're here...

...there are many ways you can work with us to advertise your company and connect to your customers. Our team can help you dight and create an advertising campaign, in print and digital, on this website and in print magazine.

We can also organize a real life or digital event for you and find thought leader speakers as well as industry leaders, who could be your potential partners, to join the event. We also run some awards programmes which give you an opportunity to be recognized for your achievements during the year and you can join this as a participant or a sponsor.

Let us help you drive your business forward with a good partnership!

I want to download the media kit