<article>The talks of a possible merger between Malaysian lenders <a style="color: #000080;" href="http://www.dealstreetasia.com/stories/45857-45857/" target="_blank">AMMB Holdings</a> and <a style="color: #000080;" href="http://www.dealstreetasia.com/stories/31357-31357/" target="_blank">RHB Bank</a> have resurfaced, according to a report in The Edge.</article>

The talks of a possible merger between Malaysian lenders <a style="color: #000080;" href="http://www.dealstreetasia.com/stories/45857-45857/" target="_blank">AMMB Holdings</a> and <a style="color: #000080;" href="http://www.dealstreetasia.com/stories/31357-31357/" target="_blank">RHB Bank</a> have resurfaced, according to a report in The Edge.
A big accounting firm is advising the potential merger that would create Malaysia&#8217;s fourth largest bank by assets, according to the report published on Monday that cited sources familiar with the discussions.
This is not the first time that AMMB and RHB have considered a merger. Earlier in 2007, both the banks had discussed it but nothing had materialised. Later in 2015, there were again talks of a possible merger but RHB clarified that there were no such plans.
Nevertheless, there were reports in 2015 that two groups will merge via a share swap which was at that time valued at $10 billion.
If at all there are fresh merger discussions, the banks would also need to seek permission from Malaysia&#8217;s Employees Provident Fund (EPF), a common shareholder in both the banks, to execute the same. <a style="color: #000080;" href="http://www.dealstreetasia.com/stories/malaysia-epf-allocate-24-6b-shariah-compliant-investments-2017-44836/" target="_blank">EPF</a> holds a 40.7 per cent stake in RHB and an 11.68 per cent stake in AMMB Holdings.
Among other common shareholders in both banks is <a style="color: #000080;" href="http://www.dealstreetasia.com/stories/abu-dhabis-new-125-billion-sovereign-fund-takes-shape-64965/" target="_blank">Aabar Investments PJS</a>, the Abu Dhabi government owned entity that had been a stumbling block in an earlier mega-merger in Malaysia between CIMB, RHB and Malaysia Building Society Bhd.
With regard to AMMB, its other shareholder <a style="color: #000080;" href="http://www.dealstreetasia.com/stories/38732-38732/" target="_blank">Australia and New Zealand Bank (ANZ)</a> may be willing to sell its close to 24 per cent stake in AMMB as it had announced last year its plan to exit minority stakes in banks in the region. AMMB&#8217;s second largest shareholder, founder and Chairman Tan Sri Azman Hashim who holds close to 13 per cent in the banking group, may also consider an exit as the 78 year old Hashim will retire from all positions over the next two years.
Among the three largest banks by assets in Malaysia are <a style="color: #000080;" href="http://www.dealstreetasia.com/stories/27253-27253/" target="_blank">Malayan Banking Bhd (Maybank)</a>, CIMB Group Holdings and Public Bank. Two years ago, there was an attempt for a three way merger of <a style="color: #000080;" href="http://www.dealstreetasia.com/stories/cimb-to-sell-18-2-pc-bank-of-yingkou-stake-to-shanghai-guozhijie-for-216-7-mn-61772/" target="_blank">CIMB</a>, RHB and Malaysia Building Society Bhd to create Malaysia largest bank by assets. However, the deal was called off on issues concerning valuations.
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Merger talks between Malaysia lenders AMMB and RHB resurface: Report

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Merger talks between Malaysia lenders AMMB and RHB resurface: Report

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