KUALA LUMPUR, June 1 (Xinhua) -- Malaysia's fourth largest bank RHB Bank and sixth largest bank Ambank Group said Thursday that they have obtained Malaysian central bank's approval to begin discussions for a merger that may create the country's fourth largest bank by asset size.
The two parties informed Malaysian stock exchange that they have entered into an exclusivity agreement to negotiate and finalize terms and conditions of the proposed merger for submission to the relevant regulatory authorities.
The exclusivity agreement will expire on Aug. 30.
RHB Bank's managing director Khairussaleh Ramli said the merger will create a stronger fourth largest banking group, with scale and market leadership across key business segments.
"We are confident that if the proposed merger takes place, it will create greater synergy for the enlarged banking group, benefiting our shareholders, customers, employees and all other stakeholders," he said.
AmBank's chief executive officer Sulaiman Mohd Tahir is also positive that the proposed merger will create a stronger business and financial presence.
"Our combined strength in key business segments particularly in retail and investment banking will bode well for us as we move forward to achieve our goal of becoming a formidable banking group," he added.
Currently, there are eight domestic banking groups in Malaysia, including RHB and Ambank.
As of March 31, RHB and Ambank's total assets stood at 234 billion ringgit (54.48 billion U.S. dollars) and 135 billion ringgit (31.5 billion U.S. dollars) respectively.
If the merger materializes, it will be the fourth largest after Malayan Banking, CIMB Group and Public Bank.
