KINIBIZ It has been quite a year. Of the many corporate deals, the proposed mega merger between CIMB Group, RHB Capital and Malaysia Building Society Bhd (MBSB) stands out as the best for its potential to create synergies and earnings growth for all involved.

But there were others very worthy of consideration — the emergence of Eco World Development Group through the reverse takeover of Focal Aims for instance, Malaysia Airlines’ turnaround plan, and Sime Darby’s massive proposed Papua New Guinea palm oil acquisition amongst others.

But for sheer size, overall impact, excitement and possible benefits, the mega banking merger dwarfs them all. KiniBiz looks at each deal in turn.

The making of Malaysia’s largest bank?

The simultaneous announcements on Bursa Malaysia, that CIMB Group Bhd (CIMB Group), RHB Capital Bhd (RHB Cap) and Malaysia Building Society Bhd (MBSB) would be suspended on July 10, 2014 was the first indicator that something big was brewing in the banking sector - likely to be a mega merger between the three entities.

The three confirmed they had been given the go ahead to enter into a 90-day exclusivity period to conduct negotiations with the aim of merging the three groups and creating a mega Islamic bank.

With this confirmation, the three begin discussing the cost, structure and other details which would be crucial to forming the mega bank – which would ultimately become Malaysia’s largest banking entity, surpassing the Malayan Banking group.

And the creation of a bank bigger than Malayan Banking is almost certainly the brainchild of Nazir Razak, long-time CIMB chief who ascended to the chairperson position this year.

For the full article, go to KiniBiz .

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