Published On: Fri, Feb 17th, 2012

CIMB Bank To Snap Up RBS Asia Equities and I-Banking Businesses

CIMB Bank owned by Malaysia’s sovereign wealth fund Khazanah Nasional Berhad, is likely to emerge as the winning bidder for Royal Bank of Scotland’s Asian cash equities, equity capital markets and mergers advisory business, two people with direct knowledge of the development said on condition of anonymity.

CIMB and China International Capital Corporation (CICC) are the only two bidders remaining for the businesses on offer and the former may have edged out the latter in the bidding process due to CIMB’s ability to meet stiff timelines set out by RBS for completing the deal, one of two people quoted above said.

A spokesperson for RBS had earlier declined comment on any potential deal for the Asian operations in response to queries from ET NOW.

Senior RBS bankers in key markets such as Hong Kong and Singapore also favour an acquisition by CIMB as that would imply less overlap in the businesses, according to the person quoted above. CICC has a strong presence in the above mentioned markets.

Royal Bank of Scotland’s operations in eleven countries in Asia including China, Japan, Singapore, Korea, Australia and India are on the block.

RBS runs a fairly large corporate finance and equity capital markets advisory business in India which employs around 50 people. It also has a fledgling cash equities business which was set up last year.

RBS’s India unit has advised on deals including London-listed metals and mining giant Vedanta’s acquisition of Cairn Energy and Adani Group’s acquisition of Abbott Point Terminal in Australia.

Source: The Economic Times

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