CIMB will not proceed with plans of acquiring RBS India assets due to "unexpected" legal hurdles.
"The termination of the proposed sale of the India Business is due to an unexpected legal issue arising in connection with the sale of the India business by RBS," said the CIMB Group.
CIMB was eyeing most of the Asia Pacific cash equities and associated investment banking businesses of RBS in India, Australia, China, Hong Kong, Indonesia, Malaysia, Singapore, Taiwan and Thailand.
"... RBS is excluding the sale of the cash equities, equity capital markets and M&A corporate finance business in India from the sale and purchase agreement entered into between CIMB Group and RBS on April 2," according toa CIMB.
Group Chief Executive Nazir Razak said CIMB remains committed to having an Indian component to the Asia Pacific investment banking platform.
"We see this as a temporary delay in our Indian build up as we will now have to follow the same process as Korea, which was excluded from the RBS transaction from the outset, and proceed to establish our own operation by applying for a new licence or purchasing an entity with an existing licence," Razak noted.
According to the Malaysian entity, the proposed acquisition involving China and Hong Kong as well as Indonesia, Malaysia, Singapore and Thailand have been completed.
The balance involving Australia and Taiwan is on schedule for completion in the fourth quarter of 2012, it added.
Do you know more about this story? Contact us anonymously through this link.