Malayan Banking Bhd (Maybank) will be making a proposal to acquire RHB Capital Bhd before the end of this month, according to Maybank chairman Tan Sri Megat Zaharuddin Megat Mohd Nor.
He said Maybank would proceed with the acquisition only if it was earnings accretive.
Megat Zaharuddin said a merger with RHB Capital Bhd would provide scale to Maybank.
“For example, it would expand our reach in Thailand and Singapore. Scale is important, especially when you are trying to compete in a region which is becoming a lot more challenging. We have global players from other parts of the world which are focusing on this part of the world, and you need scale in order to compete,” he said after Maybank EGM yesterday.
Megat Zaharuddin added that a Maybank-RHB Capital merger would allow the enlarged entity to pool talents and systems.
Maybank is in a tussle with CIMB Group Holdings Bhd to take over RHB Capital, following an announcement in April by Abu Dhabi Commercial Bank (ADCB) of its plan to sell its 25% stake in RHB Capital.
However, last weekend, ADCB announced that it was planning to sell its stake to Abu Dhabi's Aabar Investments.
Maybank president and chief executive officer Datuk Seri Abdul Wahid Omar said: “Concerning this development, we will have to wait for further details from ADCB.”
Abdul Wahid reiterated that it was still early days as far as the proposed acquisition of RHB Capital was concerned.