Tag: merger & acquisition

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Background: Rivals CIMB and Maybank are racing against each other to merge (takeover?) with RHB. It is a high-stake game. The winner will have a significantly increased regional profile.

At the same time, a current shareholder of RHB, Abu Dhabi Commercial Bank (ADCB) is selling its stake to its sister’s company Aabar Investments. Both the ADCB and Aabar Investments are owned by the government of Abu Dhabi.

Something fishy is going on with that sale, especially when such transaction is being done knowing that CIMB and Maybank are in competition to merge with RHB. Maybe the government Abu Dhabi is artificially pushing the value of RHB up. It is bad sport but they cannot really be blamed for that.

Reacting to that, the Bank Negara has told RHB that the transaction price between ADCB and Aabar should not affect the prices to be offered by CIMB and Maybank. A truly “what the hell” moment from the Bank Negara. If the transaction between ADCB and Aabar is fishy, the Bank Negara’s involvement is a complete dung.

Initially, I was neutral with the merger, despite knowing that a successful transaction between RHB and CIMB or Maybank would create a giant government-linked company.

With the Bank Negara’s latest position, I am moving towards the opposition camp. I am waiting for somebody to have the balls to flick to the bird to CIMB, Maybank, Khazanah Nasional, Permodalan Nasional Berhad, the Bank Negara and the government of Malaysia.

Oh, you should really try to form your own opinion before voting.  Sorry for about trying to affect your opinion. Naughty me (but hey, this is a libertarian blog. The default opinion is likely to be obvious).