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DBS Eyes Malaysian Bank Acquisitions
Singapore's DBS bank explores expansion into Malaysia via potential acquisitions of stakes in local banks.
English
United States
InvestmentInternational TradeIndo PacificBankingAcquisitionSoutheast AsiaExpansion
Dbs Group Holdings LtdAlliance Bank Malaysia BhdTemasekKuwait Finance HouseBank Negara Malaysia
Piyush GuptaTan Su ShanAnwar Ibrahim
- What is DBS Group Holdings Ltd exploring?
- DBS Group Holdings Ltd, Singapore's largest bank, is exploring expansion into Malaysia through potential acquisitions of stakes in Malaysian banks, including Alliance Bank and Kuwait Finance House's retail banking assets.
- What past experiences influence this current attempt by DBS?
- Previous attempts by DBS to acquire a stake in Alliance Bank were unsuccessful due to regulatory hurdles, but the current Malaysian government is more receptive to foreign investment, increasing the likelihood of success this time.
- Which Malaysian banks are potential targets for acquisition?
- The exploration includes a potential purchase of Temasek's 29.1% stake in Alliance Bank Malaysia Bhd, valued at approximately $460 million, and the acquisition of Kuwait Finance House's Malaysian retail banking assets, worth over $500 million.
- What are the factors driving DBS's interest in expanding to Malaysia?
- DBS's expansion into Malaysia is driven by the country's strong economic growth, fueled by increased investments and infrastructure projects, leading to projected credit growth. The move also aligns with DBS's regional expansion strategy under its outgoing CEO.
- What are the current stages of the acquisition talks and what approvals are needed?
- Discussions are still in the early stages and require approval from Bank Negara Malaysia. DBS aims to establish a retail banking presence in Malaysia, a move supported by the country's improving economic prospects.