OF MALAYSIA’S TOP 10 banking groups, only one, the biggest, is out of the M&A frame. Four banks are involved in negotiations, and there is speculation of varying credibility about the remaining five. A smaller bank, Bank Islam, is being bid for by Dubai Financial, a subsidiary of Dubai Investment Group.
At the centre of the action is Southern Bank, Malaysia’s ninth-largest banking group, which for more than three months has been pursued by CIMB, part of the Bumiputra-Commerce Group, Malaysia’s second largest. The deal’s twists and turns have been front-page news, with interest stoked by the involvement of prominent figures that include the sultan of Malaysia’s Selangor state; Nazir Razak, CIMB’s CEO; and Chua Ma Yu, one of the country’s most prominent investors.
The deal...
