Malaysian lenders AmBank Group and RHB Banking Group have scrapped plans of their merger after months of negotiations.

The companies said that the merger plans were scrapped off as they were “not able to reach an agreement on mutually acceptable terms and conditions”.

In June 2017, the two lenders received the approval of the country’s central bank to start talks of the proposed merger, which was expected to be an all shares deal. The deal, if successful, would have established the fourth-largest banking group in Malaysia.

With the merger being called off, the exclusivity period pursuant to the exclusivity agreement also lapsed immediately.

AmBank group CEO Sulaiman Mohd Tahir said: “Given the heritage and strength of the AmBank Group, we are confident of moving forward despite the fact that the merger did not materialise. Our Group’s strategy and direction remains the same as we aspire to deliver on our Group Top 4 growth aspirations.”

RHB Banking group managing director Khairussaleh Ramli added: “With this decision, we will now continue to execute our initiatives under our current strategy to create value for our shareholders, and focus on delivering superior customer experience.”