The local regulator has rejected what would have been Taiwan’s largest financial merger.
The Financial Supervisory Commission (FSC) of Taiwan has rejected CTBC Financial Holding's $4.1 billion takeover bid for Shin Kong Financial Holdings, according to a statement by the regulator. Issues cited included insufficient comprehensiveness in its plan and the lack of a guarantee to increase capital for Shin Kong’s life insurance arm.
The regulator’s decision blocked what would have become the creation of Taiwan’s largest financial group.
The FSC’s rejection will now pave the way for a merger between Shin Kong and Taishin Financial Holding, subject to shareholder approval, which would form Taiwan’s fourth largest financial group if successful. Taishin has offered a share swap deal valued at around $7 billion.
