RHB Cap, OSK spring a surprise

JUST when one thought that the merger and acquisition momentum had slowed in corporate Malaysia, along comes the announcement by RHB Capital Bhd and OSK Holdings Bhd, which caught many industry observers and analysts by surprise.

Last Thursday, in late separate filings with Bursa Malaysia, the two banking groups said they were seeking Bank Negara approval to start merger negotiations. At this stage, it is still unclear how the merger will take shape owing to scant details but analysts generally concur that RHB Cap, as the larger entity in terms of market capitalisation, will take over OSK Investment Bank Bhd's (OSK IB) operations.