KUALA LUMPUR: Talks between CIMB Group Holdings Bhd and Royal Bank of Scotland (RBS) for the latter’s Asian equities are at a very preliminary stage with no commitment yet, according to an analyst familiar with the matter.
CIMB declined to comment on the talks with RBS.
The Financial Times reported yesterday that CIMB and China International Capital Corp are the two remaining bidders in the running to buy RBS’ Asian equities, mergers and acquisitions, and research businesses.
According to the newspaper, the units which are part of the UK bank’s investment banking division, are expected to command up to US$50 million (RM150 million).
“In our meeting with them earlier, CIMB’s management team said they are not going through any acquisition. They provided guidance that they are only doing due diligence on the Philippine bank,” said the analyst.
He also said the group as an investment bank is open to any opportunity and is constantly looking at many deals.
“But there is no commitment or desperation to buy. CIMB is very selective and not desperate. Any acquisition must add value. This RBS case is at a preliminary stage that the management is not giving any guidance on it,” said the analyst, adding that according to RBS, it would retain its banking operations.
The analyst is sceptical if RBS is a right fit for CIMB as it (CIMB) is focusing on Asean right now while RBS has an Asian reach, which may be contradictory to CIMB’s goal at the moment.
“However, the acquisition of RBS will leapfrog CIMB’s presence in the region but I don’t know if it has the appetite to go for the whole of Asia,” he said, adding that right pricing would be crucial in any acquisition.
Last month it was reported that CIMB was in talks with brewer San Miguel Corp for a stake in the Philippines’ Bank of Commerce.
CIMB group chief executive Datuk Seri Nazir Razak said last month that the parties are still in negotiations and he hoped the discussions will conclude by the first quarter this year.
Nazir also said the bank would apply for a licence in Laos and if the deal in the Philippines goes through, CIMB will have a presence in the whole of Asean.
This article appeared in The Edge Financial Daily, February 9, 2012.
CIMB declined to comment on the talks with RBS.
The Financial Times reported yesterday that CIMB and China International Capital Corp are the two remaining bidders in the running to buy RBS’ Asian equities, mergers and acquisitions, and research businesses.
According to the newspaper, the units which are part of the UK bank’s investment banking division, are expected to command up to US$50 million (RM150 million).
“In our meeting with them earlier, CIMB’s management team said they are not going through any acquisition. They provided guidance that they are only doing due diligence on the Philippine bank,” said the analyst.
He also said the group as an investment bank is open to any opportunity and is constantly looking at many deals.
“But there is no commitment or desperation to buy. CIMB is very selective and not desperate. Any acquisition must add value. This RBS case is at a preliminary stage that the management is not giving any guidance on it,” said the analyst, adding that according to RBS, it would retain its banking operations.
The analyst is sceptical if RBS is a right fit for CIMB as it (CIMB) is focusing on Asean right now while RBS has an Asian reach, which may be contradictory to CIMB’s goal at the moment.
“However, the acquisition of RBS will leapfrog CIMB’s presence in the region but I don’t know if it has the appetite to go for the whole of Asia,” he said, adding that right pricing would be crucial in any acquisition.
Last month it was reported that CIMB was in talks with brewer San Miguel Corp for a stake in the Philippines’ Bank of Commerce.
CIMB group chief executive Datuk Seri Nazir Razak said last month that the parties are still in negotiations and he hoped the discussions will conclude by the first quarter this year.
Nazir also said the bank would apply for a licence in Laos and if the deal in the Philippines goes through, CIMB will have a presence in the whole of Asean.
This article appeared in The Edge Financial Daily, February 9, 2012.
