The potential merger of two Malaysian banks could allow ANZ to extricate itself from another Asian asset.

Under the stewardship of CEO Shayne Elliott, ANZ has been selling down and unwinding its Asian investments.

Malaysian media reports have said the central bank in Kuala Lumpur has now approved merger talks between RHB Bank Bhd and AMMB Holdings Bhd (AmBank).

ANZ owns a 23.8 percent stake in AmBank which is estimated to be worth about $1.2 billion.

Tainted Wealth Fund Link

RHB is Malaysia's fourth biggest bank while AmBank is the sixth largest. Both company's shares were suspended from trading on Wednesday May 31.

AmBank was embroiled in alleged disappearance of billions of dollars from Malaysia's state investment fund 1MDB. 

Being able to sell the stake as a result of a takeover offer of AmBank would allow ANZ to dispose of its holding in a clean break, and continue the strategy Elliott set out to achieve in his early days as chief executive.

Strategic Exit From Asia

finews.asia reported in January that ANZ sold it's 20 percent holding in Shanghai Rural Commercial Bank as it continued to calibrate its investments in Asia to focus on its domestic market.

In April the Melbourne based entered into an agreement to sell its retail business in Vietnam to Shinhan Bank Vietnam. And in perhaps its highest profile move in October 2016 ANZ sold its wealth management and retail banking business in Singapore, Hong Kong, China, Taiwan and Indonesia to Singapore's DBS Bank.