CIMB: Merger with RHB must be ‘value creating’

CIMB plans to have talks with Aabar Investments regarding the merger.

The chief executive of Malaysia's second largest lender CIMB Group Nazir Razak said its potential takeover of smaller rival RHB Capital must be a "value creating merger", and the question of price was "not relevant", according to a report by local wire Bernama.

CIMB is presently competing with the Southeast Asian country's largest bank, Malayan Banking (Maybank), to merge with RHB, which will create one of the largest financial groups in Southeast Asia.

"We are in discussion with RHB as to whether such a merger can happen," Nazir was quoted as saying. "CIMB is looking to negotiate a value creating merger...so the price is not relevant."

A new major shareholder in RHB emerged last Friday after Abu Dhabi Commercial Bank signed the sale agreement of its 25 percent stake in RHB with Abu Dhabi-based investment fund Aabar Investments for 10.80 ringgit ($3.56) per share.

View the full story in Reuters.