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April 12, 2018

Cathay Financial terminates deal to acquire Malaysian unit of Bank of Nova Scotia

Taiwanese financial firm Cathay Financial has terminated an agreement to acquire Bank of Nova Scotia’s Malaysian unit Bank of Nova Scotia Berhad (BNSB).

In a regulatory filing to the Taiwan Stock Exchange, the company said that it decided to scrap the deal as some conditions in the agreement could not be closed before the timeline.

Last year, Cathay Financial agreed to acquire the Malaysian unit of Bank of Nova Scotia through its subsidiaries Cathay United Bank and Cathay Life in a deal valued $225m, Reuters reported.

Under the terms of the agreement signed at that time, Cathay United Bank was about to own 51% stake in BNSB while Cathay Life would hold the remaining 49% interest.

The company said that the two parties had time up to 30 April to agree on the deal terms.

Earlier in 2016, another Taiwanese institution CTBC Financial Holding was also unable to complete an acquisition deal in Malaysia.

CTBC’s deal to acquire 100% stake in Royal Bank of Scotland Berhad, a subsidiary of Royal Bank of Scotland, also failed.

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