KUALA LUMPUR (June 1): RHB Bank and AMMB Holdings have confirmed that they are exploring a merger and that they have obtained approval from Bank Negara Malaysia (BNM) to commence discussions.
 
With BNM’s approval, the two lenders said they have inked an exclusivity agreement to negotiate and finalise terms and conditions of the proposed merger by Aug 30.
 
“It is envisaged that the transaction will effectively be an all shares merger,” RHB and AMMB said in a joint statement today.
 
RHB Bank group managing director Datuk Khairussaleh Ramli said if the proposed merger takes place, it will create greater synergy for the enlarged banking group, benefiting its shareholders, customers, employees and all other stakeholders.
 
“A merger of RHB Banking Group and AmBank Group will create a stronger fourth largest banking group, creating scale and market leadership across key business segments,” he added.

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