CIMB intent on buying Philippine bank

CIMB's acquiring a 60% stake in Bank of Commerce.

CIMB Group Holdings Bhd said negotiations to take over Bank of Commerce are in the final stages and a decision should be made within a month. Other reports said San Miguel Corporation, which owns the stake, has indicated might scrap the deal.

“Everything is going smoothly.” Razak said.

There is a chance San Miguel may yet walk away from the US$296 million agreement to sell a majority stake in Bank of Commerce to CIMB. San Miguel confirmed earlier comments by its President, Ramon Ang, that the deal was encountering problems and that Ang may decide in about a week whether to pull out.

A stake sale will allow San Miguel exit the banking business and expand growth beyond traditional food and drinks. San Miguel has expanded into airlines, oil and electricity and is in talks to invest in an energy venture through a US$5 billion equity investment, Ang said.

CIMB agreed in May 2012 to buy a 60% stake in Bank of Commerce from San Miguel and other shareholders, helping it expand into Southeast Asia.

The delay is being caused by legal problems concerning San Miguel's real estate operations and has nothing to do with valuation or asset quality.