Yesterday, AmBank and RHB Bank mutually agreed to end negotiations and not proceed with the proposed merger. Both banks released an announcement on Bursa Malaysia yesterday saying that the merger was cancelled after much deliberation and negotiations as they were “not able to reach an agreement on mutually acceptable terms and conditions”.

In a press release announced yesterday RHB Bank Group Managing Director, Dato Khairussaleh Ramli said that, “We would like to record our since appreciation to the Board of Directors and Senior Management of AmBank Group for their cooperation throughout the discussions.”

She added that RHB Group will now continue to execute their initiatives under their current strategy to create value for the shareholders, and focus on delivering superior customer experience.

Meanwhile, in the same press release, Ambank Group CEO, Dato’ Sulaiman Mohd Tahir, said that AmBank is confident to move forward despite the merger not materializing. He said that the Group’s strategy and direction remain the same and they are focused on the FY2018’s business plan in line with the Group’s Top 4 strategy.

Source: Macquarie Research - 23 Aug 2017