DBS’ (D05.SG) acquisition of RBS' China retail and commercial banking business is unlikely to have a material impact on its shares in the near-term.

The operations won't be contributing to DBS soon with the deal expected to be completed within 6 months.

The impact upon completion may also be modest as DBS will get only about 25,000 customers from RBS, which is selling its operations in Shanghai, Beijing and Shenzhen.

RBS' China retail and commercial business is described as "small" in its own website. In another indication that the deal is modest in size, the acquisition price has not been disclosed.

Still, the move is strategic, enabling DBS to step up its presence in China, where its staff strength will double to 2,000 post-acquisition. Shares are down 0.1% at $14.00 vs flat at $14.02 midday. More details are expected at a DBS news conference at 4:30 p.m.