The proposed merger between Saudi-based Al Rajhi Bank’s Malaysian unit and MIDF is left hanging in the balance after the duo’s shareholders missed a 27 June deadline to come up with a deal.

According to a local daily, the lenders’ respective owners— Saudi’s Al Rajhi Bank and Permodalan Nasional Bhd (PNB)—requested for more time to negotiate the merger from Malaysia’s central bank.

It remains unclear if the central bank will grant their request as it had already extended the deadline once before.

The merger is seen as a positive development for the Islamic banking industry. Al Rajhi Malaysia has commercial and retail banking as well as wealth management operations, while MIDF has investment banking and research operations.

JP Morgan is advising PNB while Al Rajhi Malaysia is being advised by Hong Leong Investment Bank in Singapore on the proposed merger.

© 2019 CPI Financial. All rights reserved. Provided by SyndiGate Media Inc. (Syndigate.info).

Disclaimer: The content of this article is syndicated or provided to this website from an external third party provider. We are not responsible for, and do not control, such external websites, entities, applications or media publishers. The body of the text is provided on an “as is” and “as available” basis and has not been edited in any way. Neither we nor our affiliates guarantee the accuracy of or endorse the views or opinions expressed in this article. Read our full disclaimer policy here.