CIMB, RHB eyes junking biggest Malaysian merger

Malaysia's largest banking group no more?.

According to a Bloomberg report, CIMB Group Holdings Bhd. (CIMB) and RHB Capital Bhd. (RHBC) are planning to scrap the three-way merger that would have created Malaysia’s largest banking group, said people with knowledge of the matter. CIMB shares rallied.

"Terms for the deal, announced in October, no longer make sense as the industry outlook worsens, said the people, who asked not to be named because deliberations are private. An announcement could come as soon as this week, one person said. The proposed combination also included the acquisition of smaller lender Malaysia Building Society Bhd. (MBS)," Bloomberg said in an article.

View the full article here.