Deals

Malaysia's AMMB, RHB Bank Plan to Scrap Proposed Merger

  • Malaysian firms couldn’t agree on terms of combination
  • Deal would have allowed ANZ Bank to exit investment in AMMB

An RHB Investment Bank Bhd.-branded overpass, photographed through a taxi, stands outside the company's headquarters in Kuala Lumpur, Malaysia, on Monday, July 21, 2014. CIMB Group Holdings Bhd. said it received central bank approval to begin merger discussions with RHB Capital Bhd. and Malaysia Building Society Bhd. to create the country’s biggest banking group by assets.

Photographer: Brent Lewin/Bloomberg
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RHB Bank Bhd., Malaysia’s fourth-largest lender by assets, and AMMB Holdings Bhd. are planning to scrap their proposed merger, according to people with knowledge of the matter.

RHB and AMMB had difficulty reaching agreement on terms, one of the people said, asking not to be identified because the information is private. The companies could announce as soon as Tuesday that they’ve decided to end talks about a combination, according to the person. RHB has a market capitalization of about $4.6 billion, while AMMB is valued at $3.3 billion in Kuala Lumpur.