CIMB Holdings, the Malaysian financial services group, has entered into exclusive negotiations with The Royal Bank of Scotland for the acquisition of the latter's Asia-Pacific operations.
A memorandum or understanding has been signed, indicating the sale of RBS Asia-Pacific's cash equities, equity capital markets and corporate finance businesses. Financial details remain under negotiation although it is known that in January CIMB had offered to buy RBS' Australian equity operations for $50 million.
The Royal Bank of Scotland has been divesting its non-core assets as part of a reorganisation strategy following a government bailout at the height of the 2008 global financial crisis. Its other operations in Asia are located in India, Hong Kong, Singapore, India, Japan, Korea and China.
According to the banks, the MOU indicates the both parties are exclusively negotiating the terms of the sale and other elements of the agreement.