CIMB to close RBS talks by end-April, says Nazir

'Talks are going reasonably well and we hope finalise them, one way or the other, within the next month,' says group CEO Datuk Seri Nazir Razak


KUALA LUMPUR: CIMB Group Holdings Bhd expects to finalise talks on the acquisition of some of Royal Bank of Scotland (RBS)’s assets in the Asia Pacific by end of next month, its chief said.

“Talks are going reasonably well and we hope finalise them, one way or the other, within the next month,” group chief executive Datuk Seri Nazir Razak told Business Times during his visit to The New Straits Times Press head office here with other CIMB officials yesterday.

CIMB had earlier this month inked a memorandum of understanding to buy certain parts of RBS’ cash-equities, equity-capital-markets and corporate finance businesses across the region.
Buying these assets will help CIMB, the country’s second largest
banking group, to strengthen its presence in Asia, in line with its regional aspirations.

It is already present in all Southeast Asian markets except for the Philippines, where it currently is in talks to buy a stake in a commercial bank, and Laos, where it is seeking a banking licence this year.

RBS’ assets for sale are concentrated in Hong Kong, India and
China, all markets in which CIMB already has a small footprint.

“RBS potentially will enable us to expand our presence in some other markets, including in Hong Kong, where we have a small operation and RBS has a large operation,” Nazir said.

In the Philippines, it is said to be close to finalising a deal to buy a 60 per cent stake in Bank of Commerce (BOC), the country’s 16th largest commercial bank by asset size.

It has been in talks with Philippine conglomerate San Miguel group, which holds 58.16 per cent of BOC, and some smaller shareholders.

“As I have said before, we hope to close it by the end of the first quarter, and so it’s still within my time frame,” Nazir said.

Apart from the BOC and RBS deals, the group was not looking at any other acquisitions at this point in time, he claimed.

CIMB, which saw its net profit grow by 15 per cent to a record RM4.03 billion last year, would stay focused on growing its businesses in Asia, with no plans to pick up banking-related assets in Europe, he said.

RBS, which is 83 per cent owned by the British government following a bailout in the recent financial crisis, is selling some of its assets in Asia to help it return to standalone financial strength.