Malaysia’s RHB Bank has announced it has ended talks with Tokio Marine Asia (TMA) over the proposed sale of its P&C insurance arm.
The deal would have sold up to 94.7% of RHB’s shares in RHB Insurance, Malaysia’s tenth largest insurer with a 4.4% market share, to TMA, a subsidiary of Japan’s Tokio Marine Holdings. Negotiations were first announced in July and were expected to close in early 2020.
In a statement, RHB said: “RHB Bank wishes to announce that after much negotiations and deliberations, both the company and TMA have not been able to reach an agreement on mutually accepted terms and conditions for the proposed disposal. Accordingly, RHB Bank and TMA have mutually agreed to cease negotiations, and will not proceed with the proposed disposal.”
If the sale of RHB Insurance had gone through, it would have marked a significant acquisition for the national market and a more positive M&A outlook.
Malaysia’s market in recent years, has been immersed in a prolonged period of uncertainty, as the state outlined a 70% ownership cap for foreign insurers in the country. With this deal now off the table, market watchers will be looking for the next sign of foreign appetite.

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