Malaysian lender RHB Capital said today that it had received approval from the central bank to start talks on a possible merger of its banking group with OSK Investment Bank Group.
Bank Negara Malaysia on October 13 said it had no objections for RHB to begin talks with OSK Investment Bank, OSK Holdings and the major shareholders of OSK Holdings for three months from the date of its letter.
The proposed merger comes as Malaysian authorities are encouraging lenders to consolidate to create larger banks that can expand their regional market share.
OSK rose to a six- month high and RHBCap gained after they received approval from Malaysia’s central bank
OSK climbed 6 per cent to RM1.78 at 2.44 pm Malaysia time in Kuala Lumpur, set for its highest close since April 7.
RHBCap added 1.2 per cent to RM7.53. - Reuters/Bloombe
