Malaysia Lenders RHB Bank and AmBank Group are to pull back from their proposed merger, news that will not be welcome to ANZ CEO Shayne Elliott.
Reports out of the Southeast Asian country suggest that both institutions were not able to agree on the terms during the talks.
When the announcement was made earlier this year several analysts pointed out that the proposed union would not create as much synergy as hoped for with both banks operating in similar target markets.
Formal announcements on the matter will be made by the relevant parties to the Malaysian authorities.
Planned Exit Stalled Again
As was recently reported by finews.asia the potential merger of the two Malaysian banks offered ANZ a chance to dispose of its 23.8 percent stake in AmBank which is estimated to be worth about $1.2 billion.
AmBank was entangled in the alleged disappearance of billions of dollars from Malaysia's state investment fund 1MDB, another reason ANZ would be keen to dispose of the holding.
Shares of both banks were suspended Tuesday pending material announcement.
