Business

Bank Negara doesn’t interfere with mergers or acquisitions

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Written by Syndicated News

KUALA LUMPUR, Aug 27 2017 : Bank Negara Malaysia (BNM) has reiterated that it does not and will not interfere with the negotiations between any parties in relation to mergers and acquisitions in the banking industry.

These activities are driven by the market, which in turn, are based largely on commercial and business considerations and the central bank plays the role of an enabler in facilitating the merger process, it said in a statement today.

BNM was responding to a local news report titled ‘What led to the collapse of Ambank/ RHB deal’ published on Friday, which the central bank said was inaccurate and could cause confusion among the players of the banking industry.

“In the reporting of such development, adopting a fair and balance view should be the norm of journalists. Any insinuation or allegation made on certain parties should be accompanied by the parties’ comments and feedback.

“Mergers in the banking sector are mainly driven by the business considerations of banking institutions themselves.

“It is therefore grossly inaccurate and indeed mischievous of the article to conclude that ?the deal is likely to have failed because the central bank was the only driver pushing the deal to go through’,” it said, adding that journalists should be fair, responsible and professional in their research and comments.

BNM said it gave approval for the parties concerned to discuss and negotiate within a stipulated time frame.

“During this period, the parties would conduct a comprehensive assessment on the merger after weighing in various considerations.

“These include assessment of potential synergies, as well as risks arising from their respective business models, operations and systems and after taking into account extensive analysis of both financial and non-financial information,” it said.

BNM said it was also the fiduciary duty of the Board of Directors of the respective entities to ensure that the merger would ultimately take into account the best interest of stakeholders, in particular that of the depositors and shareholders. – Bernama

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