The planned merger between CIMB Group, RHB Capital and Malaysia Building Society’s MBSB would create a banking colossus in Malaysia but might also struggle with extensive duplication of branches and people, according to banking analysts.
CIMB, RHB and MBSB said in a statement on Thursday that they had won approval from Bank Negara Malaysia to start talks to merge the businesses of RHB and CIMB as well as create an enlarged Islamic Banking franchise with MBSB.
There have been persistent rumours of a change in ownership at RHB ever since Malaysia’s Employees Provident Fund EPF acquired an 82% stake in the bank in 2007. CIMB...
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